Unit Root Tests

question 32

Multiple Choice

Unit root tests

• A)use the standard normal distribution since they are based on the t-statistic.
• B)cannot use the standard normal distribution for statistical inference. As a result the ADF statistic has its own special table of critical values.
• C)can use the standard normal distribution only when testing that the level variable is stationary, but not the difference variable.
• D)can use the standard normal distribution but only if HAC standard errors were computed.

---

Definitions:

Dependent Variable

The variable in an experiment that is measured or tested by the researcher to observe the outcome of changes in the independent variable.

Random Assignment

A method used in experiments to evenly distribute individuals across treatment groups, minimizing biases and ensuring that differences observed are due to the experimental treatment.

Operational Definitions

Operational definitions specify the measurable conditions or specific procedures used to determine the presence, quantity, or quality of a variable, facilitating clear communication and replication in research.

Reckless Behavior

Actions taken without considering the safety of oneself or others, often with a disregard for the consequences.