Which of the Following Statements Is True

question 8

Multiple Choice

Which of the following statements is true?

• A)A model with a lagged dependent variable cannot satisfy the strict exogeneity assumption.
• B)Stationarity is critical for OLS to have its standard asymptotic properties.
• C)Efficient static models can be estimated for nonstationary time series.
• D)In an autoregressive model, the dependent variable in the current time period varies with the error term of previous time periods.

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Definitions:

Urethra

The tube through which urine (and, in men, semen) passes.

Tuskegee Study

A notorious and unethical study conducted by the U.S. Public Health Service to track the progression of untreated syphilis in African American men without their informed consent.

Syphilis

A bacterial infection usually spread by sexual contact that starts as a painless sore and can cause serious health issues if not treated.

Human Immunodeficiency Virus

A retrovirus that causes AIDS by infecting and gradually destroying the immune system.