The Normal Approximation to the Sampling Distribution of 1

question 11

Multiple Choice

The normal approximation to the sampling distribution of 1 is powerful because

• A)many explanatory variables in real life are normally distributed.
• B)it allows econometricians to develop methods for statistical inference.
• C)many other distributions are not symmetric.
• D)is implies that OLS is the BLUE estimator for β1.

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Definitions:

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