The t-statistic has the following distribution:
A) standard normal distribution for n < 15
B) Student t distribution with n–1 degrees of freedom regardless of the distribution of the Y.
C) Student t distribution with n–1 degrees of freedom if the Y is normally distributed.
D) a standard normal distribution if the sample standard deviation goes to zero.
Answer: C
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According to purchasing power parity, which of the following is FALSE about an overvalued dollar compared to the Japanese yen?
A) U.S. merchants would be motivated to import more Japanese goods. B) Japanese merchants would tend to export more to the United States. C) Prices in the United States would tend to fall. D) Over the long term, the exchange rate would fall. E) Prices in Japan would tend to rise.
Which of the following assumptions is required for obtaining unbiased random effect estimators?
A. The idiosyncratic errors are heteroskedastic. B. The unobserved effect is independent of all explanatory variables in all time periods. C. The idiosyncratic errors are serially correlated. D. The unobserved effect is correlated with the explanatory variables.