The Homoskedasticity-Only Estimator of the Variamce Of $\widehat { \beta } _ { 1 }$

question 35

Multiple Choice

The homoskedasticity-only estimator of the variamce of $\widehat { \beta } _ { 1 }$ is

• A) \(\frac { s _ { \hat { u } } ^ { 2 } } { \sum _ { i = 1 } ^ { n } \left( X _ { i } - \bar { X } \right) ^ { 2 } }\)
• B) \(\frac{s_{\hat{u}}}{\sqrt{\sum_{i=1}^{n}\left(X_{i}-\bar{X}\right)^{2}}}\)
• C) \(\frac { s _ { \hat { u } } ^ { 2 } } { \sum _ { i = 1 } ^ { n } X _ { i } ^ { 2 } - \bar { X } }\)
• D) \(\frac { 1 } { n } \times \frac { \frac { 1 } { n - 2 } \sum _ { i = 1 } ^ { n } \left( X _ { i } - \bar { X } \right) ^ { 2 } \hat { u } _ { i } ^ { 2 } } { \left[ \frac { 1 } { n } \sum _ { i = 1 } ^ { n } \left( X _ { i } - \bar { X } \right) ^ { 2 } \right] ^ { 2 } }\)

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Definitions:

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of demand to price changes.

Vertical Straight Line

In the context of graphing, a line that runs straight up and down, parallel to the y-axis, representing an infinite or undefined slope.

Quantity Supplied

The level of a good or service that sellers are eager and able to provide for purchase at a set price over a given period.

Perfectly Price Inelastic

A market situation where the quantity demanded of a good does not change in response to changes in its price.