Which of the following statements is true? A)Taking a log of a nonnormal distribution yields a distribution that is closer to normal. B)The mean of a nonnormal distribution is 0 and the variance is σ². C)The CLT assumes that the dependent variable is unaffected by unobserved factors. D)OLS estimators have the highest variance among unbiased estimators.

Question

Quizplus · Accepted Answer

Taking the log of a nonnormal distribution can transform it to a distribution that is closer to normal, as the log function tends to compress higher values and expand lower values, resulting in a more symmetrical distribution.

Which of the Following Statements Is True