Explain Why the OLS Estimator for the Slope in the Simple

question 53

Essay

Explain why the OLS estimator for the slope in the simple regression model is still unbiased, even if there is correlation of the error term across observations.

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Definitions:

Incentive Pay Plan

A compensation strategy that pays employees based on their performance or the achievement of specific business goals.

Gainsharing

A compensation strategy where employees receive benefits from improvements in the company's performance, such as increased productivity or cost savings.

Gainsharing

A performance-based compensation strategy that rewards employees for contributing to the company's success through efficiencies and improvements.

Group Incentive Plan

A compensation system designed to reward a group of employees based on the collective achievements or performance of the group.