If _j Is an OLS Estimator of a Regression

question 11

Multiple Choice

If _j is an OLS estimator of a regression coefficient associated with one of the explanatory variables, such that j = 1, 2, …., n, asymptotic standard error of _j will refer to the:

• A)estimated variance of _j when the error term is normally distributed.
• B)estimated variance of a given coefficient when the error term is not normally distributed.
• C)square root of the estimated variance of _j when the error term is normally distributed.
• D)square root of the estimated variance of _j when the error term is not normally distributed.

---

Definitions:

Market Price

The present rate at which a product or service can be purchased or sold on the market.

Downward-Sloping Demand

A market situation in which the quantity demanded of a good or service decreases as its price increases, depicting an inverse relationship between price and demand.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.

Willingness to Pay

The maximum amount an individual or organization is willing to spend to acquire a good or service.