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True (T) or False (F) - 5 points (NO NEED TO EXPLAIN, JUST SAY WHETHER IT IS TRUE OR FALSE) B. 1. R-squared never decreases w

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Answer #1

1)
True
R^2 always increases when adding new predictors
2)
True
Panel data contain observations of multiple phenomena obtained over multiple time periods for the same firms or individuals.

4)
False
If the test statistic has a p-value below an appropriate threshold (e.g. p < 0.05)
then the null hypothesis of homoskedasticity is rejected and heteroskedasticity assumed.

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