Standard errors still are utilized for hypothesis testing

Reference no: EM13685497

Presume that the dependent variable in your regression has a non-normal distribution, even after controlling for the x variables (In other words, MLR.6 is violated). Under what circumstances can the OLS coefficients and standard errors still are utilized for hypothesis testing?

Reference no: EM13685497

Questions Cloud

Affect the equilibrium price level and real gdp : Use an aggregate demand and aggregate supply diagram to illustrate and describe how each of the following will affect the equilibrium price level and real GDP

What is the value of the multiplier for this economy : Presume we are given the following information for the economy of Birch enough. GDP is $12,000, planned investment spending is $400 and autonomous consumption is $600. The marginal propensity to consume is 0.82. What is the value of the multiplier fo..

A risk adverse individual : A risk adverse individual has to choose among $100 with certainty and a risky option with two equally likely outcomes, $100-x and $100+x. Use graph or math to show that this person's risk smaller, the smaller x is (the less variable the gamble is

Increase mongolias rate of economic growth : How might freeing up dead capital have helped to increase Mongolia’s rate of economic growth? What kind of investment would foreign residents undertake if they were to purchase a small fraction of the shares of stocks owned by Mongolia’s residents?

Standard errors still are utilized for hypothesis testing : Presume that the dependent variable in your regression has a non-normal distribution, even after controlling for the x variables (In other words, MLR.6 is violated). Under what circumstances can the OLS coefficients and standard errors still are util..

Recent changes in airline baggage handling limit travellers : Recent changes in airline baggage handling limit travellers to one 40-50 lb checked bag without penalty. Is this good FAA-imposed public policy? Good for whom? Bad for whom? Why should the FAA impose the rules instead of individual airlines offering ..

Amount of fertilizer farmer jones puts on the corn fields : Why may the amount of fertilizer Farmer Jones puts on the corn fields not affect the corn price or Jones' neighbour’s profits? But if Cadillac offers a new fuel "economic V-8" how come Lexus, BMW, Mercedes, Infinity, and Acura are affected?

What uniform series of cash flows is equivalent : What uniform series of cash flows is equivalent to a $100,000 cash flow, fifteen years from now, if the uniform cash flows occur at the end of the year for the next fifteen years and the periodic interest rate is 8.5 percent compounded yearly?

Monetary policy is impotent in achieving macroeconomic goals : Describe why a monetary policy is impotent in achieving macroeconomic goals under the fixed exchange rate system. Begin your discussion with the assumption that the economy is at equilibrium in the balance of payments (external balance), however at l..

User Account

All Pages