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MMLU / A researcher tests for structural stability in the following regression model:

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question

A researcher tests for structural stability in the following regression model: yt=β1+β2x2t+β3x3t+uty_t = \beta_1 + \beta_2 x_{2t} + \beta_3 x_{3t} + u_t The total sample of 200 observations is split exactly in half for the sub-sample regressions. Which would be the unrestricted residual sum of squares?
Plain-text mathematical notation (without MathML)
A researcher tests for structural stability in the following regression model:

y_(t)=β₁+β₂x_(2t)+β₃x_(3t)+u_(t)

The total sample of 200 observations is split exactly in half for the sub-sample regressions. Which would be the unrestricted residual sum of squares?
Original LaTeX notation
A researcher tests for structural stability in the following regression model:

$y_t = \beta_1 + \beta_2 x_{2t} + \beta_3 x_{3t} + u_t$

The total sample of 200 observations is split exactly in half for the sub-sample regressions. Which would be the unrestricted residual sum of squares?

choices

  1. The RSS for the whole sample
  2. The RSS for the first sub-sample
  3. The RSS for the second sub-sample
  4. The sum of the RSS for the first and second sub-samples

subject

econometrics

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