Consider the Following Regression Model: Y = ₀

question 28

Multiple Choice

Consider the following regression model: y = ₀ + ₁x₁ + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

• A)The sum, and therefore the sample average of the OLS residuals, is positive.
• B)The sum of the OLS residuals is negative.
• C)The sample covariance between the regressors and the OLS residuals is positive.
• D)The point ( ) always lies on the OLS regression line.

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