The slope estimator,β1,has a smaller standard error,other things equal,if
A)there is more variation in the explanatory variable,X.
B)there is a large variance of the error term,u.
C)the sample size is smaller.
D)the intercept,β0,is small.

Question

Quizplus · Accepted Answer

The standard error of the slope estimator is influenced by the variation in the explanatory variable. As there is more variation in X, the points are spread out more, which makes it easier to estimate the slope accurately. Therefore, option A is the best choice.

The Slope Estimator,β1,has a Smaller Standard Error,other Things Equal,if