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:

Proactive Interference

The phenomenon where old memories hinder the recall of newly learned information.

Retroactive Interference

A phenomenon in psychology where newly acquired information interferes with the recall of previously learned information.

Repression

A psychological defense mechanism where distressing thoughts, memories, or impulses are unconsciously pushed out of conscious awareness.

Semantic Memory

A type of long-term memory involving the storage of general knowledge, facts, concepts, and meanings not tied to specific experiences.