)In the multiple regression model which of the following does NOT lead to larger variances of the least squares estimators b₂ and var(b₂)? A)larger error variances,$\sigma$² B)larger correlation between x₂ and x₃ C)smaller values of Ʃ(x_i2 - x̅₂)² D)larger correlation between x₂ and y

Question

Quizplus · Accepted Answer

Larger correlation between $x$ and $y$ does not lead to larger variances of the least squares estimators; it typically indicates a stronger relationship, potentially leading to more precise estimates. Options A, B, and C all describe factors that can increase the variance of the estimators.

)In the Multiple Regression Model Which of the Following Does σ\sigmaσ

)In the Multiple Regression Model Which of the Following Does $\sigma$