If variance of an independent variable in a regression model, say x₁, is greater than 0, or Var(x₁) 0, the inconsistency in ₁ (estimator associated with x₁) is negative, if x₁ and the error term are positively related.

Question

If variance of an independent variable in a regression model, say x₁, is greater than 0, or Var(x₁) > 0, the inconsistency in ₁ (estimator associated with x₁) is negative, if x₁ and the error term are positively related.

Quizplus · Accepted Answer

If variance of an independent variable, say x₁, is greater than 0, the inconsistency in 11eab06d_2510_c07a_beed_2b9d899cc47a_TB2133_11 ₁ (estimator associated with x₁) is positive if x₁ and the error term are positively related.

If Variance of an Independent Variable in a Regression Model