Which of the Following Is True of the White Test

question 7

Multiple Choice

Which of the following is true of the White test?

• A)The White test is used to detect the presence of multicollinearity in a linear regression model.
• B)The White test cannot detect forms of heteroskedasticity that invalidate the usual Ordinary Least Squares standard errors.
• C)The White test can detect the presence of heteroskedasticty in a linear regression model even if the functional form is misspecified.
• D)The White test assumes that the square of the error term in a regression model is uncorrelated with all the independent variables, their squares and cross products.

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Definitions:

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