The Slope Estimator, β₁, Has a Smaller Standard Error, Other

question 17

Multiple Choice

The slope estimator, β₁, has a smaller standard error, other things equal, if

• A)there is more variation in the explanatory variable, X.
• B)there is a large variance of the error term, u.
• C)the sample size is smaller.
• D)the intercept, β₀, is small.

---

Definitions:

Inventory Accounts

Refers to the ledger accounts that hold records of a company's raw materials, work-in-progress, and finished goods.

FOB Shipping Point

This term refers to a delivery method where the buyer assumes ownership and responsibility for goods the moment they leave the seller's premises.

Ending Inventory

The total value of all inventory a company has in stock at the end of a financial period.

Physical Count

The process of manually counting and verifying the quantities of inventory on hand at a specific point in time.