Question: 1.The normality assumption implies that: a. the population error u is dependent on the explanatory variables and is normally distributed with mean equal to one
1.The normality assumption implies that:
a.
the population error u is dependent on the explanatory variables and is normally distributed with mean equal to one and variance 2.
b.
the population error u is independent of the explanatory variables and is normally distributed with mean equal to one and variance .
c.
the population error u is dependent on the explanatory variables and is normally distributed with mean zero and variance .
d.
the population error u is independent of the explanatory variables and is normally distributed with mean zero and variance 2.
2 .A normal variable is standardized by:
a.
subtracting off its mean from it and multiplying by its standard deviation.
b.
adding its mean to it and multiplying by its standard deviation.
c.
subtracting off its mean from it and dividing by its standard deviation.
d.
adding its mean to it and dividing by its standard deviation.
3.In the multiple regression model, if x1 is correlated with u but the other independent variables are uncorrelated with u, then all of the OLS estimators are generally consistent.
a.
True
b.
False
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