In econometrics,we typically do not rely on exact or finite sample distributions because
A)we have approximately an infinite number of observations (think of re-sampling).
B)variables typically are normally distributed.
C)the covariances of Yi,Yj are typically not zero.
D)asymptotic distributions can be counted on to provide good approximations to the exact sampling distribution (given the number of observations available in most cases).

Question

Quizplus · Accepted Answer

Asymptotic distributions can be counted on to provide good approximations to the exact sampling distribution, given the number of observations available in most cases. This is why we typically rely on asymptotic distributions in econometrics, rather than exact or finite sample distributions.

In Econometrics,we Typically Do Not Rely on Exact or Finite