The Normal Approximation to the Sampling Distribution Of $\widehat { \beta } _ { 1 }$

question 15

Multiple Choice

The normal approximation to the sampling distribution of $\widehat { \beta } _ { 1 }$ is powerful because

• A) many explanatory variables in real life are normally distributed.
• B) it allows econometricians to develop methods for statistical inference.
• C) many other distributions are not symmetric.
• D) is implies that OLS is the BLUE estimator for \(\beta _ { 1 }\)

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Definitions:

Depreciation Expense

The cost allocated over the useful life of a tangible asset to account for its decline in value due to use and time.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and available for use.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances to reflect accurate and fair financial statements.

Closing Entry

An accounting entry made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts.