Which of the Following Statements Is True

question 22

Multiple Choice

Which of the following statements is true?

• A)When explanatory variables are not strictly exogenous, the t test for serial correlation is valid.
• B)When explanatory variables are not strictly exogenous, the Durbin Watson test for serial correlation is valid.
• C)Breusch-Godfrey test can be used to check for second order serial correlation.
• D)White test can be used to check for second order serial correlation.

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Definitions:

Alpha

In statistics, alpha refers to the probability of making a Type I error, which is the incorrect rejection of a true null hypothesis.

Two-Tier Wage System

A remuneration model where two distinct pay scales exist for employees within the same organization, often based on seniority or job role.

Labor Costs

The total sum of all wages, benefits, and taxes that a business must pay for its employees.

Existing Salaries

The current compensation rates for employees within an organization or industry.