Correlation of the Regression Error Across Observations

question 45

Multiple Choice

Correlation of the regression error across observations

• A)results in incorrect OLS standard errors.
• B)makes the OLS estimator inconsistent, but not unbiased.
• C)results in correct OLS standard errors if heteroskedasticity-robust standard errors are used.
• D)is not a problem in cross-sections since the data can always be "reshuffled."

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Definitions:

Consumers

Individuals or households that purchase goods and services for personal use.

Services

Intangible products such as healthcare, education, and financial advising that are consumed at the point of delivery and do not result in ownership of physical goods.

Supply

The total amount of a specific good or service that is available to consumers, often influenced by price levels.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various price points within a certain period.