Assume That You Have Used the OLS Estimator in the Cointegrating

question 14

Multiple Choice

Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test. The resulting ADF test statistic has a

• A)normal distribution in large samples.
• B)non-normal distribution which requires ADF critical values for inference.
• C)non-normal distribution which requires EG-ADF critical values for inference.
• D)normal distribution when HAC standard errors are used.

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Definitions:

Cash Short

A situation where the recorded amount of cash does not match the actual amount of cash available, often indicating errors or theft.

Cash Over

A situation where the amount of cash on hand is more than what was expected or reported, often requiring investigation.

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, controlled through a fund system to manage small business transactions.

Auxiliary Petty Cash Record

A detailed log used to track the small transactions handled through a petty cash fund, aiding in the reconciliation and management of petty cash.