The Institute of Econometric Excellence's report "Adult Males Living with Parents" states the following: The examination of the percentage of males aged 25-34 living with their parents across 1000 US cities reveals that together three economic and three social variables explain 85% of the changes in "cohabitation." To test the adequacy of the model, researchers added the squared and cubed values for the predicted percentages of cohabitation which raised the explanatory power by only one percentage point.

1. The name of the test the authors were running to test the model adequacy is the A) (Ramsey RESET /Davidson-MacKinnon J/Quandt-Andrews Breakpoint test).

2. Results from the cohabitation model show B) (no signs/signs) of misspecification. This is proven by using C)_ (an F-statistic /t-statistic/J-statistic) whose value is D)_ _ (xxxx) which exceeds its critical value of E)_ _(xxx) at the 5% significance level.