The normal approximation to the sampling distribution of $\widehat { \beta } _ { 1 }$ is powerful because
A) many explanatory variables in real life are normally distributed.
B) it allows econometricians to develop methods for statistical inference.
C) many other distributions are not symmetric.
D) is implies that OLS is the BLUE estimator for $\beta _ { 1 }$

Question

The normal approximation to the sampling distribution of  $\widehat { \beta } _ { 1 }$ is powerful because
A) many explanatory variables in real life are normally distributed.
B) it allows econometricians to develop methods for statistical inference.
C) many other distributions are not symmetric.
D) is implies that OLS is the BLUE estimator for $\beta _ { 1 }$

Quizplus · Accepted Answer

The normal approximation allows econometricians to use statistical inference methods, such as hypothesis testing and confidence intervals, which rely on the properties of the normal distribution.

The Normal Approximation to the Sampling Distribution Of β^1\widehat { \beta } _ { 1 }β​1​

The Normal Approximation to the Sampling Distribution Of $\widehat { \beta } _ { 1 }$