Multiple Choice
A spurious regression refers to a situation where:
A) the direction of the relationship between the dependent variable and the explanatory variables is uncertain.
B) even though two variables are independent, the OLS regression of one variable on the other indicates a relationship between them.
C) a few important and necessary explanatory variables are left out of a regression equation, thus leading to inefficient and inconsistent forecasts.
D) at least one of the variables used in a regression equation does not have a unit root and the error terms are heteroskedastic.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Which of the following statements is true?<br>A)The
Q2: The Koyck distributed lag model is an
Q4: The long-run propensity measures the long-run change
Q5: If the t statistic for the presence
Q6: Vector autoregressive models should be used for
Q7: If two series have means that are
Q8: Exponential smoothing is a forecasting method where
Q9: The R<sup>2</sup> calculated in a spurious regression
Q10: The model: y<sub>t</sub> = <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8272/.jpg" alt="The
Q11: Let {(y<sub>t</sub>, z<sub>t</sub>): t = …, −2,−1,