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In the Case of the Simple Regression Model Yi =

Question 8

Multiple Choice

In the case of the simple regression model Yi = β0 + β1Xi + ui, i = 1, …, n, when X and u are correlated, then


A) the OLS estimator is biased in small samples only.
B) OLS and TSLS produce the same estimate.
C) X is exogenous.
D) the OLS estimator is inconsistent.

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