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.
Correct Answer:
Verified
Correct Answer:
Verified
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