Question

which statement is true regarding variation in the explanatory variable?

A. it affects the estimate of \beta 1

B. It affects variance of estimate of \beta 1

C. Both of the above are true

D. Neither of the above is true

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Answer #1

Answer:

The variation in the explanatory variable affects both the estimate of its beta coefficient and variance of the coefficient.

Thus option C (i.e. Both the above are true) is the correct answer.

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