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Question: 1. Write out and explain the formula for the standard error of an estimator in a regression with two independent variables where both variables are correlated. Explain the intuition behind a situation in which an independent variable shows little (or no) variation and why estimation by OLS produces unreliable estimates. What are the implications for t-tests?

2. Explain the intuition behind a robust standard error (also known as White- heteroskedastic consistent standard errors). [NO, I did not invent these, but I should have!]

1. What are the implications for t-tests on individual parameter estimates in a regression?

2. What are the implications for F-tests?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92294202

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