Determinants of Human Capital Development in Ethiopia: Implications to Education Policy

Table 3

Diagnostic tests.

Test statistics	LM version		F version
	CHSQ value	Prob. chi-square (2)	F value	Prob. F
Serial correlation^a	1.3022	0.254	1.0133	0.323
Functional form^b	0.94803	0.330	0.73025	0.400
Normality^c	1.0845	0.581
Heteroscedasticity^d	1.3867	0.239	1.3621	0.251

a: Lagrange multiplier test of residual serial correlation; b: Ramsey’s RESET test using the square of the fitted values; c: based on a test of skewness and kurtosis of residuals; d: based on the regression of squared residuals on squared fitted values.