Finite-Sample Distributions of the OLS Estimator and T-Statistics Are Complicated

question 45

Multiple Choice

Finite-sample distributions of the OLS estimator and t-statistics are complicated, unless

• A)the regressors are all normally distributed.
• B)the regression errors are homoskedastic and normally distributed, conditional on X₁,... X_n.
• C)the Gauss-Markov Theorem applies.
• D)the regressor is also endogenous.

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Definitions:

Sensory Input

Information received through the senses, which is then processed by the brain.

Perception

The process of organizing, identifying, and interpreting sensory information in order to represent and understand the environment.

Signal-detection Theory

A psychological theory that explains how we discern between information-bearing patterns and random noise in the environment.

Sensory Processes

The mechanisms by which information from the environment is absorbed, transformed into neural signals, and perceived.