Which of the Following Statements Is True

question 7

Multiple Choice

Which of the following statements is true?

• A)OLS estimates in censored regression models are consistent estimators of the population coefficients.
• B)In a truncated regression model, the samples are not included randomly from an underlying population but are based on a given rule.
• C)In a censored regression model, units in the sample are taken from a particular subset of the population.
• D)Maximum likelihood estimators are consistent in truncated regression models even if there is nonnormality or heteroskedasticity in the error terms.

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Definitions:

Rental Price

The amount of money charged to rent a property, such as an apartment or house, typically billed on a monthly basis.

Causal Relationship

When one variable causes a change in another variable.

Explanatory Variables

Variables in a statistical model that are used to explain variations in the response variable.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.