The Granger Causality Test
A) uses the F-statistic to test the hypothesis that certain regressors have no predictive content for the dependent variable beyond that contained in the other regressors.
B) establishes the direction of causality (as used in common parlance) between X and Y in addition to correlation.
C) is a rather complicated test for statistical independence.
D) is a special case of the Augmented Dickey-Fuller test.
Ans: A) uses the F-statistic to test the hypothesis that certain regressors have no predictive content for the dependent variable beyond that contained in the other regressors.
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