State with brief reasons whether the following statements are true, false, or uncertain. a. OLS is an

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State with brief reasons whether the following statements are true, false, or uncertain.
a. OLS is an estimating procedure that minimizes the sum of the errors squared, ∑u2i.
b. The assumptions made by the classical linear regression model CLRM. are not necessary to compute OLS estimators.
c. The theoretical justification for OLS is provided by the Gauss-Markov theorem.
d. In the two-variable PRF, b2 is likely to be a more accurate estimate of B2 if the disturbances ui follow the normal distribution.
e.
The OLS estimators b1 and b2 each follow the normal distribution only if ui follows the normal distribution.
f.
r2 is the ratio of TSS/ESS.
g. For a given alpha and d.f., if the computed | t | exceeds the critical t value, we should accept the null hypothesis.
h. The coefficient of correlation, r, has the same sign as the slope coefficient b2.
i. The p value and the level of significance, α, mean the same thing. Fill in the appropriate gaps in the following statements: Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Essentials of Econometrics

ISBN: 978-0073375847

4th edition

Authors: Damodar Gujarati, Dawn Porter

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