Table 5.

Simulation Results: Rejection Rates (%) at Cutoff Values

			Cutoff value
	K	N	.96	.97	.98	.99
Misspecification I	2	500	3.6	27.6	85.4	99.4
		1000	0.0	0.0	34.6	99.6
		2500	0.0	0.0	47.6	100.0
		5000	0.0	0.0	61.4	100.0
	5	500	19.4	69.8	96.2	100.0
		1000	0.0	2.0	65.8	100.0
		2500	0.0	1.8	99.2	100.0
		5000	0.0	0.8	100.0	100.0
Misspecification II	2	500	0.2	11.4	67.2	99.2
		1000	0.0	2.6	70.8	100.0
		2500	0.0	1.2	96.0	100.0
		5000	0.0	0.0	98.8	100.0
	5	500	4.2	42.8	91.8	100.0
		1000	1.0	48.6	99.6	100.0
		2500	0.0	40.6	100.0	100.0
		5000	0.0	78.2	100.0	100.0

K: number of categories; N: sample size