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QUESTION 5 Suppose you obtained one sample from the same data generating process as above (Y...

Question

QUESTION 5 Suppose you obtained one sample from the same data generating process as above (Y...

QUESTION 5 Suppose you obtained one sample from the same data generating process as above (Y = 2 + 3x+ u), and your estimate β 1 (the estimated X coefficient) was 2.107. Which of the following best describes whether the estimator is biased? The estimator is biased because the estimate 2.107 is too far below the population parameter of 3 The estimator is not biased because the estimate 2.107 is within 30 percent of the population parameter 3. We do not have enough information: an unbiased estimator with a large standard error could have produced an estimate of 2.107

QUESTION 5 Suppose you obtained one sample from the same data generating process as above (Y = 2 + 3x+ u), and your estimate β 1 (the estimated X coefficient) was 2.107. Which of the following best describes whether the estimator is biased? The estimator is biased because the estimate 2.107 is too far below the population parameter of 3 The estimator is not biased because the estimate 2.107 is within 30 percent of the population parameter 3. We do not have enough information: an unbiased estimator with a large standard error could have produced an estimate of 2.107

Answers

AnsThe. eshmator is biased becouse eshmate 210 is too far bdoud the the 2-10 eunr


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