Standardized LM tests. For (H_{0}^{c} ; sigma_{mu}^{2}=sigma_{lambda}^{2}=0), (a) Verify that the standardized Lagrange multiplier (SLM) test statistics
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Standardized LM tests. For \(H_{0}^{c} ; \sigma_{\mu}^{2}=\sigma_{\lambda}^{2}=0\),
(a) Verify that the standardized Lagrange multiplier (SLM) test statistics derived by Honda (1991) is as described by (4.26) and (4.31).
(b) Also, verify that the King and \(\mathrm{Wu}\) (1997) standardized test statistic is as described by (4.26) and (4.32).
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