Question

Answer each question by writing TRUE or FALSE 1. For OLS estimators to be linear the explanatory variables must be variable, non- stochastic and fixed in repeated samples. Under the conditions of perfect multicollinearity, the OLS estimators are not unique. The presence of heteroskedasticity causes the OLS method to overestimate the variances 2. 3. of the parameters. The Breusch-Godfrey LM test is applicable when a lagged dependent variable is used. If we include a non-influential variable in an equation the OLS estimators will be biased 4. 5. and not consistent. 6. The Chow test statistic for structural stability follows the F-distribution. 7. The order condition is sufficient to test for identification. 8. Consider the AR(1) model yt-PH-1 + et, if loi < 1 the series is non-stationary. 9. Given that Yt~1(1) and Xt~(1) such that their linear combination Yt-BXt 1(0), then we will encounter the spurious regression problem. 10. If a regression model suffers from autocorrelation the OLS estimators may still be unbiased and consistent.

Answer 1

Answer :

1) false

2)false

3)true

4)true

5)true

6)true

7)true

8)false

9)false

10)false