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Why Is It Helpful to Think About the Moment Conditions

Question 32

Multiple Choice

Why is it helpful to think about the moment conditions of a simple linear regression even if OLS yields the same estimates?


A) The moment conditions are easier to program in Excel.
B) The moment conditions will get the smaller standard errors.
C) The moment conditions establish causality whereas OLS just estimates correlation.
D) The moment conditions are used directly to produce the slope and intercept.

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