Chapter 8: Statements Flashcards
1
Q
The estimated slope of the simple regression model indicates how the actual value of y changes as x changes.
A
WRONG - It indicates how the predicted value of y changes as x changes.
2
Q
The sum of the residuals (uhat) is zero.
A
RIGHT - This is one of the sample moment conditions.
3
Q
If the sample correlation between x and y is zero, then the slope of the ordinary least squares regression is zero.
A
RIGHT - The OLS slope is calculated as sample covariance between x and y divided by variance of x.
4
Q
x and uhat are always uncorrelated.
A
RIGHT - This is one of the sample moment conditions.
5
Q
The OLS estimators are unbiased only if u is homoskedastic.
A
WRONG - The OLS estimator is unbiased even if u is heteroskedastic.
