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 assumes that the square of the error term in a regression model is uncorrelated with all of the independent variables, their squares, and cross products. c. The White test cannot detect forms of heteroscedasticity that invalidate the usual ordinary least squares standard errors. d. The White test can detect the presence of heteroscedasticity in a linear regression model even if the functional form is misspecified.
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 assumes that the square of the error term in a regression model is uncorrelated with all of the independent variables, their squares, and cross products. c. The White test cannot detect forms of heteroscedasticity that invalidate the usual ordinary least squares standard errors. d. The White test can detect the presence of heteroscedasticity in a linear regression model even if the functional form is misspecified.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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 assumes that the square of the error term in a regression model is uncorrelated with all of the independent variables, their squares, and cross products.
c. The White test cannot detect forms of heteroscedasticity that invalidate the usual ordinary least squares standard errors.
d. The White test can detect the presence of heteroscedasticity in a linear regression model even if the functional form is misspecified.
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