Reference no: EM13789458
1. True, False, Explain (Say whether each statement answer is true or false, then explain why. Your grade depends on the quality of your explanation).
a. Suppose you estimate the population regression model
Ung Ordinary Least Squares (OLS). ^
If assumptions SLR.1 through SLR.4 are met, then the value of β1 that you get will be equal to the value of β1 in the population regression model.
b. When you estimate a regression using a sample from some population, a good way of checking the truth of the assumption that E(u| x1, x2 . .) = 0 in the population is to see if the sample residuals from the OLS regression are uncorrelated with the dependent variable y. ^
c. If the slope estimate in a simple regression is zero (that is, β1), then the average of the dependent variable must be equal to the intercept estimate.
d. The standard error of the slope estimate in a simple regression will be larger if the standard error of the regression is larger, other things equal.
e. If you run simple regression relating a standardized test score to class size, and the R-squared value is less than .10, the regression is useless.
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