Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A)To carry out OLS estimation, it is necessary that the error terms should be correlated with the explanatory variables.
• B)Measurement error and simultaneity are potential sources of endogeneity.
• C)While entering data for a regression analysis, qualitative explanatory variables should be assigned numerical values.
• D)AR models are best suited for ordered responses.

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Definitions:

Statement Of Comprehensive Income

A financial statement that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its annual interest expenses.

Financial Position

A snapshot of a company's assets, liabilities, and equity at a given point in time, showing its economic situation.

Statement Of Comprehensive Income

A financial statement that presents a company's total income, including both net income and other income items that are not included in the net income.