The Hausman's specification error test is used to test whether: (A) An exogenous variable is correlated with the error term. (B) An endogenous variable is correlated with the error term. (C) Both an exogenous variable is correlated with the error term and an endogenous variable is correlated with the error term. (D) OLS method is appropriate to estimate the SEM.

UGC-NET 2023 Question 12: Choosing and interpreting statistical tests

The Hausman's specification error test is used to test whether:

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Choosing and interpreting statistical tests has come up 14 times in 4 exams since 2021.

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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