Suppose we estimate a regression model that is linear in the parameters, the sample is obtained through random sampling, is no perfect collinearity, the errors have zero conditional mean and are homoskedastic, and the sample size is large. Even under these conditions, the OLS estimators of the parameters are not normally distributed, even approximately, if the regression errors are not normally distributed. A. True B. False

Suppose we estimate a regression model that is linear in the parameters, the sample is obtained through random sampling, is no perfect collinearity, the errors have zero conditional mean and are homoskedastic, and the sample size is large. Even under these conditions, the OLS estimators of the parameters are not normally distributed, even approximately, if the regression errors are not normally distributed. A. True B. 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

Chapter4: Estimating Demand

Section: Chapter Questions

Problem 1E

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