Question

Select the appropriate technique with the problem you are looking for.

Answer 1

Answer:

A, B, C, D

Step-by-step explanation:

(A) Checking the Equal Variance Assumption, the appropriate technique to use is:

- The ANOVA (Analysis of Variance) F test

- Plot residuals against fitted values

(B) Checking the Normal Assumption, the appropriate techniques to use are:

- Test for Kurtosis & Skewness

- Kolmogorov-Smirnov Test

- Q-Q Plots (the graphical method) also known as Quantile Plot

- Do not use a histogram; it is not advisable

(C) Checking for Model Misspecification, the appropriate techniques to use are:

- The Ramsey Regression Specification Error Test; also called RESET

- The Davidson & MacKinnon J. Test

(D) Checking for dependent errors, the appropriate technique to use is:

- Plot residuals against time variables