AppliedMultiple choice
Which assumption is essential for the OLS coefficients to be unbiased?
- AThat the errors are normally distributed
- BThat the errors have mean zero given the regressors
- CThat the errors have constant variance
- DThat the sample has more than thirty observations
The worked solution is in Premium
The answer, the full working and the one idea to take away – for this and all 1,322 questions in the bank. Answer it in practice and your working is marked, with a known mistake named when you make one.
Learn the method
More regression and econometrics questions
- Your errors are heteroskedastic. What is still true of the OLS coefficients?Applied
- In a simple regression the error standard deviation is 2 and Σᵢ(xᵢ−x)² = 25.Applied
- One influential observation, part 1 of 3Foundation
- A stock has 30% volatility, the index 15%, and their correlation is 0.6.Foundation
- A simple regression has a correlation of 0.6 between the two variables.Foundation
- A regression has a total sum of squares of 200 and a residual sum of squares of 50.Foundation