The Proof That OLS Is BLUE Requires All of the Following

question 52

Multiple Choice

The proof that OLS is BLUE requires all of the following assumptions with the exception of:

• A)the errors are homoskedastic.
• B)the errors are normally distributed.
• C)E(ui .
• D)large outliers are unlikely.

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Definitions:

Underestimating

The act of judging something to be of lower quantity, value, or importance than it actually is.

Project

A planned set of interrelated tasks to be executed over a fixed period and within certain costs and other limitations.

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments and abilities is greater than their objective accuracy.

Algorithms

Step-by-step procedures or formulas for solving a problem or accomplishing a specific task, often used in computing and mathematics.