Which of the following statements is true?

A. To carry out OLS estimation, it is necessary that the error terms should be correlated with the explanatory variables.
B. Measurement error and simultaneity are potential sources of endogeneity.
C. While entering data for a regression analysis, qualitative explanatory variables should be assigned numerical values.
D. AR models are best suited for ordered responses.


Answer: B

Economics

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A) increased; short-term; increase B) decreased; short-term; decrease C) increased; long-term; increase D) decreased; long-term; decrease E) increased; short-term; decrease

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Private entrepreneurs are likely to make better investment decisions than central planners because

What will be an ideal response?

Economics