Consider a linear causal model Ya+XB+ u where u = Xe and e is a standard normal random variable that is independent of X. Then the OLS estimator of 3 obtained by regressing Y on a constant and X is consistent. True False

Consider a linear causal model Ya+XB+ u where u = Xe and e is a standard normal random variable that is independent of X. Then the OLS estimator of 3 obtained by regressing Y on a constant and X is consistent. True False

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter4A: Problems In Applying The Linear Regression Model

Section: Chapter Questions

Problem 5E

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Consider a linear causal model
Ya+XB+ u where u = Xe and e is a standard normal
random variable that is independent of X. Then the OLS estimator
of obtained by regressing Y on a constant and X is consistent.
True
False

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