If OLS estimators satisfy asymptotic normality,it implies that: A)they are approximately normally distributed in large enough sample sizes. B)they are approximately normally distributed in samples with less than 10 observations. C)they have a constant mean equal to zero and variance equal to σ². D)they have a constant mean equal to one and variance equal to σ.

Question

Quizplus · Accepted Answer

Asymptotic normality implies that as the sample size gets larger and larger, the distribution of the OLS estimators approaches a normal distribution. This is why option A is correct. Options B, C, and D are incorrect because they do not accurately describe the implications of asymptotic normality.

If OLS Estimators Satisfy Asymptotic Normality,it Implies That