teest 7 Flashcards
1
Q
it is always optimal to chose an unbiased estimator over a biased estimator.
A
false
variance of ubiased may be much higher
2
Q
ramsey reset test is a test for functional form
A
true
3
Q
you can genralize the ramsey reset test by adding cubic and higher order powers
A
true
4
Q
Serial correlation is a problem associated with time-series
data.
It occurs when the errors of the regression model are
correlated with their own past values.
A
t
5
Q
serial correlation mean ols will be biased
A
false
6
Q
The most common effect of serial correlation is to bias
downwards the standard errors of the OLS estimator
A
true
7
Q
Autocorrelation is a particular type of serial correlation in which
the error terms are a function of their own past values.
A
true
