HAC Standard Errors and Clustered Standard Errors Are Related as Follows

question 18

Multiple Choice

HAC standard errors and clustered standard errors are related as follows:

• A)they are the same
• B)clustered standard errors are one type of HAC standard error
• C)they are the same if the data is differenced
• D)clustered standard errors are the square root of HAC standard errors

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Definitions:

Critical

Involving objective analysis and evaluation of an issue in order to form a judgment.

Temper Tantrums

Outbursts of anger and frustration, typically seen in children, that are often expressed through yelling, crying, or physical defiance.

Decision-Making Strategy

A systematic approach or method employed to choose among alternatives and make informed choices.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic, concept, method, or decision.