Simultaneous Equations Present a Challenge Because OLS Estimates

question 8

Multiple Choice

Simultaneous equations present a challenge because OLS estimates

• A)do not properly weight the data for the undue influence of outliers.
• B)do not account for the autoregressive structure of the error term.
• C)treat the dependent variable as a continuous variable.
• D)are biased because one or more right hand side variables from each equation are correlated with the error term due to the equations being jointly determined.

---

Definitions:

White South

A term referring to the American South's sociopolitical and cultural environment, highlighting its historical context of racial segregation and dominance by white Americans.

Supreme Court

The Supreme Court is the highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional or federal law.

Black Families

Refers to the social, economic, and cultural dynamics and structures of African American households and family units in the United States.