Misspecification of functional form of the regression function
A) is overcome by adding the squares of all explanatory variables.
B) is more serious in the case of homoskedasticity-only standard error.
C) results in a type of omitted variable bias.
D) requires alternative estimation methods such as maximum likelihood.
Question 2
It is advisable to use clustered standard errors in panel regressions because
A) without clustered standard errors, the OLS estimator is biased
B) hypothesis testing can proceed in a standard way even if there are few entities (n is small)
C) they are easier to calculate than homoskedasticity-only standard errors
D) the fixed effects estimator is asymptotically normally distributed when n is large
Functional Groups
Abilities that Display Cerebral Lateralization of Function
How to find the domain and range of a function (Part 1)
A schematic diagram of the functional cycle of the Na+–K+ pump
How to quickly determine the maximum or minimum value of a quadratic equation in standard form
How to visualize division in the Odds form of Bayes's Theorem?