If the random errors in a model are independent,then the estimated standard errors for the coefficients are biased.

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Quizplus · Accepted Answer

If the random errors in a model are independent, the estimated standard errors for the coefficients are not biased. The unbiasedness of the estimated standard errors relies on the assumption of independence between the errors. If the errors are truly independent, then the estimation of the coefficients and their standard errors using OLS regression will be unbiased.

If the Random Errors in a Model Are Independent,then the Estimated