Solved

If the Error Term Is Correlated with Any of the Independent

Question 19

Multiple Choice

If the error term is correlated with any of the independent variables, the OLS estimators are:

A) biased and consistent.
B) unbiased and inconsistent.
C) biased and inconsistent.
D) unbiased and consistent.

Related Questions

Q14: Even if the error terms in a

Q15: A normally distributed random variable is symmetrically

Q16: Which of the following statements is true?<br>A)In

Q17: If variance of an independent variable in

Q18: The LM statistic follows a:<br>A)t distribution.<br>B)f distribution.<br>C)

Q20: An auxiliary regression refers to a regression

Q21: In a regression model, if variance of

Q22: The LM statistic requires estimation of the

Q23: If OLS estimators satisfy asymptotic normality, it

Q24: The Cauchy-Schwartz inequality implies that the asymptotic