Under Assumptions MLR.1 through MLR.4, E(B;) = B, for any value of Bj, j = 1, .., k: Bj is an a. unbiased estimator for Bj. Unbiasedness is a feature of the sampling distributions of ß; 's, which says nothing about the O b. estimates obtained from a given sample. It is always possible that one random sample, used to estimate (1), gives point estimates far from the true population parameters B;'s. Including one or more irrelevant variables in a multiple regression model, or overspecifying the c. model, does not affect the unbiasedness of the OLS estimators, but it can have undesirable effects of the variances of the OLS estimators. d. All of the above.

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Chapter4: Linear Functions
Section4.3: Fitting Linear Models To Data
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Consider the multiple linear regression model, y = Bo + B1X1 + ...+ BrXk + u (1). Which of the following
statements is correct?
Under Assumptions MLR.1 through MLR.4, E(B) = B; for any value of Bj, j = 1,
k: Bj is an
....
а.
unbiased estimator for Bj.
Unbiasedness is a feature of the sampling distributions of Bj 's, which says nothing about the
b.
estimates obtained from a given sample. It is always possible that one random sample, used to
estimate (1), gives point estimates far from the true population parameters B;'s.
Including one or more irrelevant variables in a multiple regression model, or overspecifying the
c. model, does not affect the unbiasedness of the OLS estimators, but it can have undesirable
effects of the variances of the OLS estimators.
d. All of the above.
Transcribed Image Text:Consider the multiple linear regression model, y = Bo + B1X1 + ...+ BrXk + u (1). Which of the following statements is correct? Under Assumptions MLR.1 through MLR.4, E(B) = B; for any value of Bj, j = 1, k: Bj is an .... а. unbiased estimator for Bj. Unbiasedness is a feature of the sampling distributions of Bj 's, which says nothing about the b. estimates obtained from a given sample. It is always possible that one random sample, used to estimate (1), gives point estimates far from the true population parameters B;'s. Including one or more irrelevant variables in a multiple regression model, or overspecifying the c. model, does not affect the unbiasedness of the OLS estimators, but it can have undesirable effects of the variances of the OLS estimators. d. All of the above.
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