Even if the error terms in a regression equation, u1, u2, …, un, are not normally distributed, the estimated coefficients can be normally distributed.
Answer the following statement true (T) or false (F)
False
Rationale: FEEDBACK: Even if the error terms in a regression equation, u1, u2, …, un, are not normally distributed, the estimated coefficients cannot be normally distributed.
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The above figure illustrates Mary's production possibilities frontier. If Mary wants to move from point d to point c, she must
A) improve technology. B) increase her accumulation of capital. C) give up some of good X in order to obtain more of good Y. D) give up some of good Y in order to obtain more of good X.
A hidden cost fallacy can be avoided
a. by ignoring the opportunity costs to using a capital b. by ignoring the cost of capital c. by taking all capital costs into account including the cost of equity d. none of the above
Economists assume that the typical person who starts her own business does so with the intention of
a. donating the profits from her business to charity. b. capturing the highest number of sales in her industry. c. maximizing profits. d. minimizing costs.
If England uses one week’s time to produce 10 yards of cloth or 2 barrels of wine and Portugal uses one week’s time to produce 12 yards of cloth or 6 barrels of wine, then England has a comparative advantage in the production of cloth.
Answer the following statement true (T) or false (F)