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 ². 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 a log of a nonnormal distribution can sometimes transform it into a distribution that is closer to normal, especially if the original distribution has a positive skewness or a high degree of kurtosis.

Which of the Following Statements Is True