ANSWER:
The correct answer is option c that is biased and inconsistent. (fact)
3. If the error term is correlated with any of the regressors, the OLS estimators are a. biased and consistent b. un...
1. If OLS estimators satisfy asymptotic normality, it implies that a. they are approximately normally distributed b. they are approximately normally distributed in samples with less than 10 observations large enough sample sizes c. they have a constant mean equal to zero and variance equal to d. they have a constant mean equal to one and variance equal to o 2 In a multiple regression model, the OLS estimator is consistent if a. there is no correlation between the dependent...
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...
2. Which of the following will cause OLS estimators for a regression Happiness = a + B Income+u to be biased? a) Income varies a lot in the sample. b) Optimistic disposition is in the unobservable u, which is correlated with the Income. c) Omit the intercept when its true value is not zero. d) Both b) and c)
2. In a multiple regression model, the OLS estimator is consistent if a. there is no correlation between the dependent variables and the error term b. there is a perfect correlation between the dependent variables and the error term c. the sample size is less than the number of parameters in the model d. there is no correlation between the independent variables and the error term
1. For a simple linear regression BMI = a + BIncome+u. Suppose you have a random sample. Which of the following statement is true? a) OLS estimators are unbiased but inefficient when BMI does not vary much in the sample. b) OLS estimators are biased when the error u captures perseverance and self- control, and you believe that people who are perseverant and have more self- control tend to have higher income. C) OLS estimators are biased when Income does...
1.7. There are three estimators: OLS, GLS, and Feasible GLS it is not quite BLUE-_ is BLUE. is more efficient than OLS GLS but (a) GLS (b) Feasible GLS, OLS (c) OLS (d) GLS Feasible GLS GLS Feasible GLS Feasible GLS; OLS Ans:A 1.8. Regarding the result in the previous equation, which of the following is the intuition behind the result? (a) While GLS loses one observation (the earliest observation), Feasible GLS does not lose any observation. (b) While Feasible...
4. Consider the regression model, y1B22+ BKiK+ei -.. where errors may be heteroskedastic. Choose the most incorrect statement (a) The OLS estimators are consistent and unbiased (b) We should report the OLS estimates with the robust standard errors (c) The Gauss-Markov theorem may not apply (d) The GLS cannot be used because we do not know the error variances in practice (e) We should take care of heteroskedasticity only if homoskedasticity is rejected Consider the regression model, +BKIK+et e pet-1+...
What is multicollinearity and how does it affect the standard errors of OLS estimators? (b) In the context of perfect multicollinearity between explanatory variables, explain why the OLS estimators cannot be derived. (c) With what methods can one detect multicollinearity? (d) Given relatively high variance of individual explanatory variables, explain why relatively low t-statistics but a relatively high F-statistic for the regression is an indication of multicollinearity.
Below are some parameters I'm interest in, and some proposed estimators. Show me whether the estimators are consistent and unbiased. Assume all samples are i.i.d., and cite any theorems that you use Hint: You should only need to use WLLN, CMT, and the i.i.d. assumption.. 1. I want to know E[X], and I estimate it using the sample mean, X 2. I want to know EX], and I estimate it using TL 4 3. I want to know Var[X], and...
In which of the following cases OLS estimation of Healthcare=a+bAge+u will be biased? a) Only include in your estimation sample individuals whose health care spending is more than 500 per year. b) Use a random sample. c) Healthcare is recorded with some random typing errors d) The error variance is larger at an older age