Question: Give counterexamples to the following claims: (a) Although errors in the explanatory variables cause inconsistency in the OLS estimator, errors in the dependent variable do

Give counterexamples to the following claims:

(a) "Although errors in the explanatory variables cause inconsistency in the OLS estimator, errors in the dependent variable do not."

(b) "Including an unnecessary explanatory variable in an OLS regression does not lead to inconsistency of the OLS estimator."

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Econometric Analysis Questions!

Q:

SA-TIED YOUNG SCHOLARS PROGRAMME Young Scholars This paper was produced as a part of the SA-TIED Young Scholars' programme. The programme is a part of SATIED's capacity building initiatives, designed...

Q:

** You can use EXCEL or any other software. ** You need to include your printout in your submissions. The layout and format of the paper should include the following sections: Title page, Abstract,...

Q:

The paper below"Preventing the use of deadly force:the relationship between police agency policies and the rates of office-involved gun deaths",and answer the following questions: What is the...

Q:

Instuctor's Annotated Edition TENTH EDITION Understandable Statistics Concepts and Methods Charles Henry Brase Regis University Corrinne Pellillo Brase Arapahoe Community College Australia Brazil...

Q:

Set Student Name: 1. Describe the relationship between two variables that have a correlation coefficient value: a. Near -1 b. Near 0 c. Near 1 2. Data was collected where a weightlifter was asked to...

Q:

Question: Evaluate the two forecasting models described in the case for predicting daily check-in volume. What are the strengths and weaknesses of each one? Do you find any of the results surprising?...

Q:

Login Required user id password Login Forgotten your password? ECONOMICS 2123B - ECONOMETRICS II LECTURE 5: SPECIFICATION OF REGRESSION VARIABLES George Orlov Department of Economics Western...

Q:

(a) Find the optimal values of monthly consumption of P (slices of pizza) and S (soda) for the following utility function U(P,S)=4P0.5S0.25 if the price of a slice of pizza is 2.50, the price of a...

Q:

Questions and resources are attached in the document. Assignment is regarding about Financial Accounting Theory. ACCT1080 Financial Accounting Theory Topic Allocations Topic of investigation...

Q:

Card, D., Krueger, A.B. (1994). Minimum wages and employment: a case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772-93. Once you have read your...

Q:

Sinar Harian Sdn. Bhd is a property company that offers the services to the clients who need to buy properties. The company offers two types of services, which is land lot and luxury condominium. The...

Q:

Refer to the computer output concerning the head length (cm) of male grizzly bears in Exercise 9.74. (a) Is the population mean head length for all male bears in the study area contained in this...

Q:

please complete entry 6 for part B foreign exchange loss 3 rdquarterPacifico Company, a U . S . - based Importer of beer and wine, purchased 1 , 1 0 0 cases of Oktoberfest - style beer from a German...

Q:

A certain bacterial population has the following odd behavior. If the population is less than 1.5 10 8 in a given generation, each bacterium produces two offspring. If the population is greater than...