HAC Standard Errors Should Be Used Because

question 45

Multiple Choice

HAC standard errors should be used because

• A)they are convenient simplifications of the heteroskedasticity-robust standard errors.
• B)conventional standard errors may result in misleading inference.
• C)they are easier to calculate than the heteroskedasticity-robust standard errors and yet still allow you to perform inference correctly.
• D)when there is a structural break, then conventional standard errors result in misleading inference.

---

Definitions:

Heterosexuals

Individuals who are sexually attracted to members of the opposite sex.

Social Stigma

The disapproval or discrimination against a person or group based on perceivable social characteristics that serve to distinguish them from other members of a society.

Fatness

A colloquial term often used to describe excess body weight or adiposity, which can carry derogatory connotations.

Sexually Hyperactive

Characterized by excessive and often compulsive engagement in sexual activities or thoughts.