Which of the following is/are used for testing the assumption of normality?
Select all that apply.
1 markEconometricsChoosing and interpreting statistical testsMatching tests to what they assessModerateabout 1 min
GATE 2023 Question 41: Choosing and interpreting statistical tests
Answer and worked solution
Answer: (A) and (C)
(A) Shapiro-Wilk test is a standard test for whether a sample comes from a normally distributed population — correct.
(B) Breusch-Godfrey test is used to test for serial correlation (autocorrelation) in regression residuals, not normality — incorrect for this purpose.
(C) Jarque-Bera test uses sample skewness and kurtosis to test whether data follow a normal distribution — correct, this is one of the most commonly used normality tests in econometrics.
(D) Park test is used to test for heteroscedasticity (testing whether error variance depends on an independent variable), not normality — incorrect for this purpose.
Therefore the correct answers are (A) and (C).
The trap: A;C;D
All four options are genuine, commonly-taught econometric test names, which makes this a test of precise recall of which diagnostic each test performs rather than general familiarity — students who remember 'these are all diagnostic tests' without matching each to its specific purpose (normality vs autocorrelation vs heteroscedasticity) may over-select.
Choosing and interpreting statistical tests has come up 14 times in 4 exams since 2021.
What this question tests
This question is on Matching tests to what they assess, part of Choosing and interpreting statistical tests in Econometrics.
Knowing which test checks which assumption.
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Question from the GATE 2023 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.