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If You Reject the Null Hypothesis When Performing a RESET

Question 2

Multiple Choice

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


A) at least one of the original coefficients is not equal to zero
B) the original model is incorrectly specified and can be improved upon
C) relevant variable are omitted and the coefficient estimates of included variables are biased
D) an incorrect functional form was used

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