1.

The OLS assumption of normally distributed error terms is a by-product of the:

	A.	outdated thinking
	B.	Law of Large Numbers
	C.	Central Limit Therem
	D.	Cauchy Inequality

2.

The matrix solution for OLS regression parameters ,inv(X`X)*(X`Y),is how we typicallyimplement the solution to aset of equations derived with calculus. Thoseequations areformally known as:

	A.	the Normal Equations
	B.	the Total Sum of Squares Equations
	C.	the Delta Equations
	D.	the Beta Equationa

3

The F sample statistic is defined as:

	A.	the ModelSum of Squares divided by the Total Sum of Squares
	B.	the average of the slope t statistics
	C.	the mean Model Sum of Squares divided by the mean Error Sum of Squares
	D.	the mean ErrorSum of Squares divided by the mean Total Sum of Squares

4

Homoskedasticityis the OLS assumption that:

	A.	all pertinent X variables are included in our model
	B.	there isno serial correlation between error terms
	C.	only one Y variable is specified in our regression model
	D.	the error variance is the same for all values of X