Chow-test Model MCQ (Multiple Choice Questions) PDF Download

To test the stability of parameters and estimating the source of change i.e. in slope or in intercept is possible through

1. Binomial coefficient approach
2. Phi-coefficient approach
3. Dummy variable approach
4. Accurate Chow approach

In chow test, the degree of freedom for unrestricted residual sum of square is set as

1. n1-n2+2k
2. n1-n2-2k
3. n1+n2-2k
4. n1+n2-k

Unrestricted residual sum of squares can be computed as

1. RSS1- RSS2
2. RSS1* RSS2
3. RSS1+ RSS2
4. RSS1/ RSS2

In chow test, one of the main assumption is that the error terms are

1. Standardized distributed
2. Normally distributed
3. Positively skewed
4. Negatively skewed

Chow test is based on the assumption that the structural break-time period is

1. Known
2. Not known
3. Fixed internal
4. Constant