State whether each of the following statements is true or false. For the stateme

Question

State whether each of the following statements is true or false. For the statements that are false, explain why they are false.

a) When performing a general linear F test, SSE(F) SSE(R)

b) SSE(X1) – SSE(X1, X2, X3) = SSR(X1) – SSR(X1, X2, X3).

c) SSR(X2, X3| X1) = SSR(X2| X1) + SSR(X3| X1, X2).

d) SSR(X1) + SSR(X2| X1) + SSR(X3| X1, X2) = SSR(X3) + SSR(X2| X3) + SSR(X1| X2, X3).

e) The degrees of freedom associated with SSR(X2 | X1, X3) is 2.

f) The degrees of freedom associated with SSR(X1, X2 | X3, X4) is 2.

Inputs Interest Rate 1% Recovery 40% Coupon Daycount 360 Default Daycount 365 Coupon Delta 0.25 MarketQuotes ParSpread 6M Output Term Hazard Rates PV(Def Leg) Risky PVO1 100 y 110 120 3y 140 140 Sy 150 7y 160 165 6M 1y 2y 3y 4y 2y 4y 7y 10y Figure 6-10. Par credit default swap spreads

Explanation / Answer

a) its true its linear F test condition'

b) its true its basic equation expansion

c) its true

d) its false equation doesnot satisfy the normal condition

e) false because here degrees of freedom is 1 not 2

f) true

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.