Theory

Name of the test

Null Hypothesis H₀

Test statistic

Prob.

Decisions

Normality Assumption of Residuals

Jarque-Bera test [20]

Residuals are normally distributed

0.810

0.667

H₀ cannot be rejected at 1%, 5% and 10% level of significance

Serial Correlation

Breusch-Godfrey Serial Correlation LM [25] test (lag 2)

There is no serial correlation

3.089

0.073

H₀ cannot be rejected at 1%, 5% level of significance

Heteroscedasticity of the variance

Breusch—Pagan-Godfrey test [26]

Homoscedastic variance

6.159

0.182

H₀ cannot be rejected at 1%, 5% and 10% level of significance