In a regression model, if variance of the dependent variable, y, conditional on an explanatory variable, x, or Var(y|x) , is not constant, _____.
A) the t statistics are invalid and confidence intervals are valid for small sample sizes
B) the t statistics are valid and confidence intervals are invalid for small sample sizes
C) the t statistics and the confidence intervals are valid no matter how large the sample size is
D) the t statistics and the confidence intervals are both invalid no matter how large the sample size is
Correct Answer:
Verified
Q1: If OLS estimators satisfy asymptotic normality, it
Q2: An auxiliary regression refers to a regression
Q4: If the model Q5: A useful rule of thumb is that Q6: Which of the following statements is true? Q7: In the multiple regression model Q8: Which of the following statements is true Q9: The Cauchy-Schwartz inequality implies that the asymptotic Q10: The LM statistic follows a: Q11: The n-R-squared statistic also refers to the:
A)In
A)t distribution.
B)f distribution.
C)
A)F
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