In a Multiple Regression Model, the OLS Estimator Is Consistent

question 9

Multiple Choice

In a multiple regression model, the OLS estimator is consistent if:

• A)there is no correlation between the dependent variables and the error term.
• B)there is a perfect correlation between the dependent variables and the error term.
• C)the sample size is less than the number of parameters in the model.
• D)there is no correlation between the independent variables and the error term.

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Definitions:

Finished Goods Inventory

The stock of completed products available for sale.

Unit Sales

The total quantity of an inventory item that a business sells to its customers within a specific period.

Credit Sales

Sales made on credit, which allow the buyer to pay the seller at a later date, typically recorded as accounts receivable.

Cash Expenditures

The total amount of money a company spends on acquiring physical goods, services, or assets in a given period.