Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)The calculated t statistic is valid and efficient in case of a spurious regression.
• B)If an explanatory variable or a dependent variable is integrated of the order one, the OLS estimators are asymptotically normally distributed.
• C)An error correction model can be used to study the short-run dynamics in the relationship between the dependent variable and the explanatory variables in a time series model.
• D)The Dickey-Fuller test can be used to test for heteroskedasticity in the error terms.

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Definitions:

Main Effect

In an experimental design, the direct impact of an independent variable on a dependent variable, disregarding the effects of other variables.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in the context of more complex experimental designs.

Interaction Effect

The combined effect of two or more independent variables on a dependent variable that is different from the effect of each variable taken individually.

Main Effect

The impact of an independent variable on a dependent variable in an experimental design, disregarding the effects of other variables.