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If You Reject the Null Hypothesis When Performing a Hausman

Question 12

Multiple Choice

If you reject the null hypothesis when performing a Hausman test,what should you conclude?


A) at least one of the explanatory variables is endogenous
B) there are no endogenous variables
C) the 2SLS estimation has corrected the endogeneity in the initial model
D) the 2SLS second stage equation still has endogenous variables

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