The OLS Residuals

question 32

Multiple Choice

The OLS residuals

• A)can be calculated using the errors from the regression function.
• B)can be calculated by subtracting the fitted values from the actual values.
• C)are unknown since we do not know the population regression function.
• D)should not be used in practice since they indicate that your regression does not run through all your observations.

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Definitions:

Marginal Costs

The uplift in total financial outlay required for the making of another unit of a product or service.

Cournot Duopolists

Firms in a market where only two producers exist and compete under the Cournot assumption, where each firm decides its production level assuming the output of its competitor is fixed.

Demand for Wine

The total quantity of wine that consumers are willing and able to purchase at various prices within a specific time period.

Imports

Goods and services purchased from other countries for domestic consumption, often contrasted with exports.