A Study Based on OLS Regressions Is Internally Valid If

question 29

Multiple Choice

A study based on OLS regressions is internally valid if

• A)the errors are homoskedastic, and there are no more than two binary variables present among the regressors.
• B)you use a two-sided alternative hypothesis, and standard errors are calculated using the heteroskedasticity-robust formula.
• C)weighted least squares produces similar results, and the t-statistic is normally distributed in large samples.
• D)the OLS estimator is unbiased and consistent, and the standard errors are computed in a way that makes confidence intervals have the desired confidence level.

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Finished Product

A good that has completed the manufacturing process and is ready for sale to customers.

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The combined costs of direct materials and direct labor, which are directly attributable to the production of goods.

Prime Costs

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