Question

9. True or False: Assuming Var (21) > 0, the inconsistency in 8, is negative if x and the error term are positively related 2

0 0
Add a comment Improve this question Transcribed image text
Answer #1

True. The beta's are consistence when they are the best linear estimators. For this the variance of error is assumed to be non-varying that is homoscedastic and errors terms to be serially uncorrelated. The correlation between Xi and error terms is assumed to be zero. Thus is the error term and the x1 are positively correlated we can no longer have consistent estimator.

Add a comment
Know the answer?
Add Answer to:
9. True or False: Assuming Var (21) > 0, the inconsistency in 8, is negative if...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT