Economics · Econometrics
Consider the classical linear regression model Y = Xβ + u. Which of the following statements is/are correct? 1. OLS estimator is unbiased even if regressors are stochastic, provided strict exogeneity holds. 2. Multicollinearity biases OLS estimates. 3. Under heteroskedasticity, OLS remains unbiased but inefficient. 4. If E(u|X) ≠ 0, the OLS estimator is inconsistent. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11 and 3 only
- 21, 3 and 4 only✓
- 32 and 4 only
- 41, 2 and 3 only
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1, 3 and 4 only
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