Consider the Following Regression Model: Y = ₀

question 15

Multiple Choice

Consider the following regression model: y = ₀ + ₁x₁ + u. Which of the following is a property of Ordinary Least Square (OLS) estimates of this model and their associated statistics?

• A)The sum, and therefore the sample average of the OLS residuals, is positive.
• B)The sum of the OLS residuals is negative.
• C) The sample covariance between the regressors and the OLS residuals is positive.
• D) The point ( ) always lies on the OLS regression line.

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Definitions:

Solar Energy

The radiant energy emitted by the sun, which can be harnessed using technologies such as solar panels to produce electricity.

Urban Sprawl

The uncontrolled expansion of urban areas into surrounding rural areas, resulting in a spread-out or low-density residential development.

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The effect of human activities on the natural environment, encompassing changes to ecosystems, biodiversity, and natural resources.

Ecocity

A city designed with careful consideration of environmental impacts, integrating sustainable resources, and aiming to reduce waste and pollution while improving the quality of life for its inhabitants.