The Slope Estimator,β1,has a Smaller Standard Error,other Things Equal,if

question 58

Multiple Choice

The slope estimator,β1,has a smaller standard error,other things equal,if

• A)there is more variation in the explanatory variable,X.
• B)there is a large variance of the error term,u.
• C)the sample size is smaller.
• D)the intercept,β0,is small.

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Definitions:

United States

A country located primarily in North America, comprising 50 states and a federal district, known for its significant influence on global culture, economy, and politics.

Household Income

The total income received by all members of a household, including earnings from work, investments, and other sources before taxes and other deductions.

Perfect Equality

A theoretical state where all individuals have exactly the same income or wealth, eliminating disparities.

Income Distribution

The way in which total income is spread amongst the population or different groups within a society.