Which of the following conditions is necessary for the sample estimates of the population coefficients that best describe the co-movement amongst the variables to be consistent?
A) The sample is a random sample.
B) The errors are distributed normally.
C) The errors are homoscedastic.
D) The errors are heteroscedastic.

Question

Quizplus · Accepted Answer

The consistency of sample estimates of population coefficients depends on a random sample that represents the population. The other conditions mentioned (normality of errors and homoscedasticity of errors) are assumptions made during the estimation procedure but do not guarantee consistency on their own.

Which of the Following Conditions Is Necessary for the Sample