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System of simultaneous regression equations

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Reference no: EM13499729

Question:

Consider the following system of simultaneous regression equations:

yi  = β1 + β2x2i + β3x3i + β4x4i + β5x5i + ei

Assuming that all the parameters are non-zero, which of the following statements is true?

a. The OLS procedure is inconsistent for equations 1 and 2, but may be consistent for Equation 3. :_; b. The OLS procedure is inconsistent for equations 1, 2 and 3.

The OLS procedure is inconsistent for Equation 1, but may be consistent for equations 2 and 3.

d. The OLS procedure is inconsistent for equations 2 and 3, but may be consistent for Equation 1. ,e. The OLS procedure is inconsistent for equations 1 and 3, but may be consistent for Equation 2.

f. The OLS procedure is inconsistent for Equation 3, but may be consistent for equations land 2.

g. Equations 1,2 and 3 may all be consistently estimated using the OLS procedure.

h. The OLS procedure is inconsistent for Equation 2, but may be consistent for equations 1and 3.

Reference no: EM13499729

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