A Study Based on OLS Regressions Is Internally Valid If

question 37

Multiple Choice

A study based on OLS regressions is internally valid if

• A)the errors are homoskedastic, and there are no more than two binary variables present among the regressors.
• B)you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula.
• C)weighted least squares produces similar results, and the t-statistic is normally distributed in large samples.
• D)the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence
• Level.

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Definitions:

Population Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values in an entire population.

Confidence Intervals

Ranges derived from statistics that estimate the likelihood of a population parameter falling within set bounds, providing insight into measurement precision.

Sample Size

Sample Size refers to the number of observations or individuals included in a sample taken from a population for statistical analysis.

Random Number

A number chosen from a set with equal probability of selection, typically used in simulations and statistical sampling.