Week 6 - Regression Diagnostics Flashcards
1
Q
F test for joint exclusion restrictions.
A
2
Q
Regression specification error test (RESET)
A
3
Q
Outlier Diagnosis: the leverage statistic, h.
A
Rules of thumb:
1 If h < .2, then such observations is unproblematic.
2 If h > .5, then such observation must be further analysed.
4
Q
What happens if you have multicollinear regressors?
A
5
Q
The variance-inflating factor (VIF)
A
6
Q
Detecting multicollinearity
A
7
Q
Detecting multicollinearity: VIF
A
8
Q
What is heteroscedasticity.
A
9
Q
Consequences of suffering from heteroscedasticity
A
