Choose the Statement That Is True About the Estimators for the Slope

question 1

Multiple Choice

Choose the statement that is true about the estimators for the slope and intercept of a regression line. Assume the conditions of the linear model hold. If all statements are true, then choose (d) .

• A)The estimators of the slope and intercept of a regression line are unbiased.
• B)The sampling distributions of the estimators will follow the Normal distribution if the Normal condition of the error terms is met.
• C)The sampling distributions of the estimators will be approximately Normal if the Normal condition of the error terms is not met but the sample size is large.
• D)All of the above are true.

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Definitions:

Equal Payments

Regular payment amounts made or received over a period, typically in the context of loans, leases, or annuities, where each payment is of the same value.

Compounded Semiannually

Compounded Semiannually refers to the process of applying interest to an initial amount of money (principal) twice a year, where the amount of interest is added to the principal at each compounding period.

Interest Rate

The percentage of a loan or savings amount that is charged as interest to the borrower or paid to the investor, typically expressed on an annual basis.

Annual Rate

The interest rate for a period of one year, often used for comparing the yields of financial products.