Finite-Sample Distributions of the OLS Estimator and T-Statistics Are Complicated,unless

question 5

Multiple Choice

Finite-sample distributions of the OLS estimator and t-statistics are complicated,unless

• A)the regressors are all normally distributed.
• B)the regression errors are homoskedastic and normally distributed,conditional on X1,...Xn.
• C)the Gauss-Markov Theorem applies.
• D)the regressor is also endogenous.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the price where supply and demand are equal.

Tax

An unavoidable fiscal exaction or different type of contribution enforced by a governmental faction on a taxpayer, intended to support the financing of governmental operations and a range of public service outlays.

Tax Revenue

The income governments procure through the levy of taxes.

Consumer Surplus

The variance between the total consumers are prepared to invest in a good or service and what they end up investing.