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Part A. The following regression model investigates factors affecting the probability of an individual's mortgage loan approval: approve 2 g + ,6] white + [hmarried
Part A. The following regression model investigates factors affecting the probability of an individual's mortgage loan approval: approve 2 g + ,6] white + [hmarried + g, income + u, where approve is a dummy variable equal 1 if a mortgage loan to an individual was approved; white is a dummy variable equal 1 if the applicant was white; married is a dummy variable equal 1 if the applicant was married; and income is the individual's income Which of the following statements is FALSE about the above regression model? Select one: Q at We can't use the t-test to test whether the coefficient of married is significant or not 0 be OLS estimators of the parameters in the model are not the Best Linear Unbiased Estimators (BLUE) 0 c' The conditional variance of the error term is not constant and thus the F-test is invalid even if the sample size is large 0 d. To estimate the regression, Weighted Least Squares [WLS) is preferred to using robust standard errors because the model is likely to suffer from the omitted variable bias
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