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Econometrics

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Inferences from a Chow Test

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What would a Chow test NOT allow you to infer?

A

Whether a model with four explanatory variables that uses the entire sample provides a better fit to the data than a model with five explanatory variables that use two or more subsamples of the data.

B

Whether you estimate different models for two or more subsamples of your data.

C

Whether parameters estimated using one subsample of your data are significantly different than parameters estimated using another subsample.

D

Whether the slopes of an estimated model that uses one subsample of your data are significantly different than the slopes of an estimated model using another subsample.

E

Whether a model that uses the entire sample provides a better fit to the data than models that use two or more subsamples of the data.