Econometrics - Hypothesis Testing
7 important questions on Econometrics - Hypothesis Testing
How can we estimate variance in homo skedasticity?
How to calculate the t statistic?
What is often te rule of thumb to reject a H0?
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When is a coefficient statistically significant?
When are two models nested?
How to choose between two nested models?
- Choose model with lowest AIC. It penalizes overly large models
- Choose model with lowest BIC, same as AIC but will have bigger penalty term for n>=8
- Critical thinking
Is an OLS unbiased under heterskedasticity?
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