In the OLS Model,what Happens to Var(b₁)as the Sample Size

question 6

Multiple Choice

In the OLS model,what happens to var(b₁) as the sample size (N) increases?

• A)it also increases
• B)it decreases
• C)it does not change
• D)cannot be determined without more information

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Definitions:

Exploitation

The act of using someone or something unfairly for one's own advantage, often without proper compensation.

Barter

The direct exchange of goods or services for other goods or services without the use of money.

Benevolence

The quality of being well-meaning and kindly; a desire to help others.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by taking the alternative action.