Which of the Following Statements Is True

question 1

Multiple Choice

Which of the following statements is true?

• A)The standard error of a regression, , is not an unbiased estimator for , the standard deviation of the error, u, in a multiple regression model.
• B)In time series regressions, OLS estimators are always unbiased.
• C) Almost all economists agree that unbiasedness is a minimal requirement for an estimator in regression analysis.
• D) All estimators in a regression model that are consistent are also unbiased.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be uncollectible.

Percentage of Sales Method

A method used for financial forecasting that predicts future occurrences, such as expenses or inventory needs, based on a fixed percentage of sales.

Bad Debt Expense

The cost associated with accounts receivable that a company is unable to collect, considered as a loss.

Bad Debt Expense

An income statement item reflecting the cost associated with the estimated uncollectible accounts receivable.