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    Question

    For which of the following Farrar–Glauber test regression test is done?

    A Autocorrelation Correct Answer Incorrect Answer
    B Heteroscedasticity Correct Answer Incorrect Answer
    C Multicollinearity Correct Answer Incorrect Answer
    D Specification Bias Correct Answer Incorrect Answer

    Solution

    The Farrar-Glauber test (F-G test) for multicollinearity is the best way to deal with the problem of multicollinearity. The F-G test is, in fact, a set of three tests for testing multicollinearity. These are  Chi-square test, then F-test is done and finally t-test is done

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