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Which of the Following Is True of the White Test

Question 7

Multiple Choice

Which of the following is true of the White test?


A) The White test is used to detect the presence of multicollinearity in a linear regression model.
B) The White test cannot detect forms of heteroskedasticity that invalidate the usual Ordinary Least Squares standard errors.
C) The White test can detect the presence of heteroskedasticty in a linear regression model even if the functional form is misspecified.
D) The White test assumes that the square of the error term in a regression model is uncorrelated with all the independent variables, their squares and cross products.

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