Assume That You Have Used the OLS Estimator in the Cointegrating

question 14

Multiple Choice

Assume that you have used the OLS estimator in the cointegrating regression and test the residual for a unit root using an ADF test. The resulting ADF test statistic has a

• A)normal distribution in large samples.
• B)non-normal distribution which requires ADF critical values for inference.
• C)non-normal distribution which requires EG-ADF critical values for inference.
• D)normal distribution when HAC standard errors are used.

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Definitions:

Directional Selection

A process of natural selection where individuals with traits on one end of the spectrum are more likely to survive and reproduce, leading to a shift in the population trait distribution over time.

Polyploid Cell

A cell containing more than two paired (homologous) sets of chromosomes, often found in plants and some animal species.

Flowering Plant

A plant that reproduces through the production of flowers and seeds, belonging to the angiosperm classification.