Which of the Following Tests Is Used to Compare the Ordinary

question 27

Multiple Choice

Which of the following tests is used to compare the Ordinary Least Squares (OLS) estimates and the Weighted Least Squares (WLS) estimates?

• A)The White test
• B)The Hausman test
• C)The Durbin-Watson test
• D)The Breusch-Godfrey test

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Definitions:

Loan Collateral

Assets or property pledged by a borrower to secure a loan, serving as a guarantee for the lender that the loan will be repaid.

Liquidation Value

The estimated total value of a company's physical assets if it were to be terminated and the assets sold, typically assessed in the context of a business facing bankruptcy.

Diversify Risk

The strategy of spreading investments across various sectors or assets to reduce the overall risk exposure.

Operating Leases

Agreements that allow one to use an asset for a specified period without owning it, typically with lower monthly payments than a finance lease.