If the Three Least Squares Assumptions Hold, Then the Large $\hat { \beta }$

question 62

Multiple Choice

If the three least squares assumptions hold, then the large sample normal distribution of $\hat { \beta }$ ₁ is

• A) \(N \left( 0 , \frac { 1 } { n } \frac { \left. \operatorname { var } \left[ X _ { i } - \mu _ { x } \right) u _ { i } \right] } { \left[ \operatorname { var } \left( X _ { i } \right) \right] ^ { 2 } } \right)\)
• B) \(N \left( \beta _ { 1 } , \frac { 1 } { n } \frac { \left. \operatorname { var } \left( u _ { i } \right) \right] ^ { 2 } } { \left[ \operatorname { var } \left( X _ { i } \right) \right] ^ { 2 } } \right)\)
• C) \(N \left( \beta _ { 1 } , \frac { \sigma _ { u } ^ { 2 } } { \sum _ { i = 1 } ^ { n } \left( X _ { l } - \bar { X } \right) ^ { 2 } } \right.\)
• D) \(N \left( \beta _ { 1 } , \frac { 1 } { n } \frac { \left. \operatorname { var } \left( u _ { l } \right) \right] } { \left[ \operatorname { var } \left( X _ { l } \right) \right] ^ { 2 } } \right)\)

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