For each of the three parts of this question, STATE whether the statement is best compatible with being TRUE or FALSE, providing a brief explanation for your answer. Each part is worth 5 marks. (a) In a logit or logistic regression, to convey the influence of an explanatory variable on the probability of observing a one for the dependent variable, best practice is to report the average of the slope coefficient estimates for over all observations in the sample.

bBecause it provides a better fit to the sample data,the feasible GLS estimator is always considered more desirable than the OLS estimator in the presence of nonspherical errors.

c.The major undesirable consequence of multicollinearity is that the variances of the OLS estimators of the parameters of the collinear variables are quite large because, in essence, the OLS estimating procedure is not given enough independent variation in a variable to calculate accurately its partial effect on the dependent variable.