Which of the following statements is true with respect to the use of one-sided tests?I. They can be useful in improving the trade-off between the risks of making Type I and Type II errors.II. They can be useful when you wish to use a significance larger than 5%.III. They can be useful when you can predict the sign of the coefficient from theory.

MCQs on Econometrics, which is the use of statistical methods to develop theories or test existing hypotheses in economics or finance.