If X_it Is Correlated with X_is for Different Values of S

question 32

Multiple Choice

If X_it is correlated with X_is for different values of s and t, then

• A)X_it is said to be autocorrelated
• B)the OLS estimator cannot be computed
• C)statistical inference cannot proceed in a standard way even if clustered standard errors are used
• D)this is not of practical importance since these correlations are typically weak in applications

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Definitions:

Register Variable

A type of variable that is stored in a CPU register instead of RAM to provide faster access to its value.

Address Operator

The address operator, represented by &, is used in languages like C and C++ to retrieve the memory address of a variable.

Extern Declaration

A statement used in C and C++ to declare a variable or function in another file or translation unit.

Compilation Error

A compilation error occurs when the source code of a program violates the syntax rules or semantic constraints of the programming language.