Which of the following statements is true?
A)OLS estimates in censored regression models are consistent estimators of the population coefficients.
B)In a truncated regression model, the samples are not included randomly from an underlying population but are based on a given rule.
C)In a censored regression model, units in the sample are taken from a particular subset of the population.
D)Maximum likelihood estimators are consistent in truncated regression models even if there is nonnormality or heteroskedasticity in the error terms.

Question

Quizplus · Accepted Answer

In a truncated regression model, the samples are not included randomly from an underlying population but are based on a given rule. Censored regression models involve censoring data, and maximum likelihood estimators are typically used. OLS estimates may not be consistent in censored regression models. Maximum likelihood estimators may not be consistent in truncated regression models if there is nonnormality or heteroskedasticity in the error terms.

Which of the Following Statements Is True