In Example 12.8, we found evidence of heteroskedasticity in u, in equation (12.47). Thus, we compute the heteroskedasticity-robust standard errors (in [:]) along with the usual standard errors: return, = .180 + .059 return,-1 (.081) (.038) [.085] [.069] n = 689, R² = .0035, R = .0020. |What does using the heteroskedasticity-robust t statistic do to the significance of return, -1?
In Example 12.8, we found evidence of heteroskedasticity in u, in equation (12.47). Thus, we compute the heteroskedasticity-robust standard errors (in [:]) along with the usual standard errors: return, = .180 + .059 return,-1 (.081) (.038) [.085] [.069] n = 689, R² = .0035, R = .0020. |What does using the heteroskedasticity-robust t statistic do to the significance of return, -1?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![In Example 12.8, we found evidence of heteroskedasticity in u, in equation (12.47). Thus, we compute
the heteroskedasticity-robust standard errors (in [:]) along with the usual standard errors:
return, = .180 + .059 return,-1
(.081) (.038)
[.085] [.069]
n = 689, R² = .0035, R = .0020.
|What does using the heteroskedasticity-robust t statistic do to the significance of return, -1?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e524648-cdd0-454e-a15e-8c4e51665f4d%2F7b1e807d-3c44-46cb-bfdb-b5f5cee9415b%2Ftpfq4y.png&w=3840&q=75)
Transcribed Image Text:In Example 12.8, we found evidence of heteroskedasticity in u, in equation (12.47). Thus, we compute
the heteroskedasticity-robust standard errors (in [:]) along with the usual standard errors:
return, = .180 + .059 return,-1
(.081) (.038)
[.085] [.069]
n = 689, R² = .0035, R = .0020.
|What does using the heteroskedasticity-robust t statistic do to the significance of return, -1?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education