Question: QUESTION 5 Commodity futures exchanges may impose limits on the daily change in price for a particular commodity contract. For example, the Chicago Board of

QUESTION 5 Commodity futures exchanges may impose limits on the daily change in price for a particular commodity contract. For example, the Chicago Board of Trade currently maintains a 30 cent per gallon limit move for its ethanol contract, so the futures price cannot move up or down by more than 30 cents per gallon from the closing price on the previous day. You want to build a regression model of the factors that influence limit-move days, so you form a binary dependent variable that equal one for limit- move days and equals zero for non-limit-move days. True or false -- a logit or probit model would be appropriate for this research project. O True O False QUESTION 6 Which test would you use to check for conditional heteroskedasticity in your fitted regression model? O A. F-test of overall regression fit O B. Breusch-Pagan test O C. Durbin-Watson test O D. Adjusted-R2 test
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