Which of the Following Assumptions Must Be Made in Order $\sigma$

question 8

Multiple Choice

Which of the following assumptions must be made in order to use the pooled least squares estimator,but is relaxed in the cluster robust model?

• A)E(e_it)= 0
• B)var(e_it)= E(e²_it)= \(\sigma\) ²
• C)cov(e_it,e_js)= E(e_it,e_js)= 0 for i j or t s
• D)cov(e_it,x_2it)= 0,cov(e_it,x_3it)

Describe the characteristics and valuation of equity investments.

Understand the concept of non-amortizable debt and its implications on bond repayment.

Identify the common vehicles for debt investments.

Analyze the impact of changes in market interest rates on bond prices.

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Definitions:

Machinists

Skilled workers who operate machine tools to fabricate parts and instruments.

Labor Supply

The total hours that workers wish to work at a given wage rate, in a given time period.

Payroll Tax

Taxes levied on employers or employees, and are based on the salary or wages of employees. These taxes fund social security and healthcare programs.

Elastic

describes a condition in which the quantity demanded or supplied of a good or service is highly responsive to changes in its price.