Which of the following statements is true? a) None of the other possible answers are true. b) Under the Classical Linear Model assumptions, the OLS estimator has the highest variance among unbiased estimators. c) Taking the natural log of a non-normal distribution often yields a distribution that is closer to normal. d) The Central Limit Theorem (CLT) assumes that the dependent variable is unaffected by unobserved factors. e) The mean of a non-normal distribution is 0 and the variance is σ2.
Which of the following statements is true? a) None of the other possible answers are true. b) Under the Classical Linear Model assumptions, the OLS estimator has the highest variance among unbiased estimators. c) Taking the natural log of a non-normal distribution often yields a distribution that is closer to normal. d) The Central Limit Theorem (CLT) assumes that the dependent variable is unaffected by unobserved factors. e) The mean of a non-normal distribution is 0 and the variance is σ2.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Which of the following statements is true?
a) None of the other possible answers are true.
b) Under the Classical Linear Model assumptions, the OLS estimator has the highest variance among unbiased estimators.
c) Taking the natural log of a non-
d) The Central Limit Theorem (CLT) assumes that the dependent variable is unaffected by unobserved factors.
e) The mean of a non-normal distribution is 0 and the variance is σ2.
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