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If Variance of an Independent Variable in a Regression Model

Question 17

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If variance of an independent variable in a regression model, say x1, is greater than 0, or Var(x1) > 0, the inconsistency in If variance of an independent variable in a regression model, say x<sub>1</sub>, is greater than 0, or Var(x<sub>1</sub>) > 0, the inconsistency in <sub>1</sub> (estimator associated with x<sub>1</sub>) is negative, if x<sub>1</sub> and the error term are positively related. 1 (estimator associated with x1) is negative, if x1 and the error term are positively related.

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