Please explain mcq 7. The components of the OLS variancesUnder assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is:Var (5) = st )SST;(1-R£)whereo? = the variance of the error termSST; = the total sample variation of 1;R = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter%3DThe variance of Bj.as R; increases.For the given model, which of the following would lead to a reduction of the sampling variance of B;?Using the same data set with the same number of observationsO choosing an explanatory variable Ik that is uncorrelatedthe other explanatory variables in the modelAdding irrelevant explanatory variables to the model that are correlated with I;Adding an explanatory variable that is equal to 5+1;

7. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is: Var (Bj sST, (1- tE) where o = the variance of the error term SST; = the total sample variation of z; = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter The variance of B as R increases. For the given model, which of the following would lead to a reduction of the sampling variance of B;? O Using the same data set with the same number of observations Choosing an explanatory variable It that is uncorrelated with the other explanatory variables in the model Adding irrelevant explanatory variables to the model that are correlated with I; Adding an explanatory variable that is equal to 5 +1;

7. The components of the OLS variances Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is: Var (Bj sST, (1- tE) where o = the variance of the error term SST; = the total sample variation of z; = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter The variance of B as R increases. For the given model, which of the following would lead to a reduction of the sampling variance of B;? O Using the same data set with the same number of observations Choosing an explanatory variable It that is uncorrelated with the other explanatory variables in the model Adding irrelevant explanatory variables to the model that are correlated with I; Adding an explanatory variable that is equal to 5 +1;

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Please explain mcq

7. The components of the OLS variances
Under assumptions MLR.1 through MLR.5, conditional on the sample values of the independent variables, the variance of B; under OLS is:
Var (5) = st )
SST;(1-R£)
where
o? = the variance of the error term
SST; = the total sample variation of 1;
R = the R-squared from a regression of I; on all of the other explanatory variables, along with an intercept parameter
%3D
The variance of Bj.
as R; increases.
For the given model, which of the following would lead to a reduction of the sampling variance of B;?
Using the same data set with the same number of observations
O choosing an explanatory variable Ik that is uncorrelated
the other explanatory variables in the model
Adding irrelevant explanatory variables to the model that are correlated with I;
Adding an explanatory variable that is equal to 5+1;

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