Which of the following statements is correct? (Read p.163 in Ch5.)

Question

Which of the following statements is correct?  (Read p.163 in Ch5.)

BlackTom AI · Accepted Answer

The question asks which statement is correct, referencing page 163 in Chapter 5. We will evaluate each option in turn and explain why it is correct or incorrect, using standard econometrics/statistics terminology.
Option 1: 'Finite sample properties of OLS estimators hold for any sample size n with the additional restriction that n must be at least as large as the numbers of parameters in the regression model.' This statement is essentially true: finite-sample properties (such as unbiasedness, exact distributions in special cases, and exact standard errors under normality) are defined for a given finite n, and a necessary condition for the OLS estimator to be computable and identifiable is that the sample size is at least as large as the number of parameters (including the intercept). However, in practice, even when n ≥ number of parameters, finite-sample properties may require additional assumptions (e.g., normality for certain exact results). Overall, the clause identifies the correct practical constraint that n must be large enough to estimate the parameters, so this option captures a key aspect of finite-sample properties.
Option 2: 'Asymptotic properties of OLS estimators are defined as the sample size grows without bound.' This is a standard and accurate definition: asymptotic properties describe the behavior of estimators as n → ∞, and are concerned with limiting distributions, consistency, and other large-sample approximations. Hence this statement is correct.
Option 3: 'Asymptotic properties are also called large sample properties.' This is another commonly used terminology: asymptotic properties are indeed referred to as large-sample properties in many texts. Therefore, this statement is correct as well.
Option 4: 'All of the above.' Given that Options 2 and 3 are correct and Option 1 conveys the key finite-sample condition about having at least as many observations as parameters (a necessary condition for identifiability and estimation in finite samples), the combined set of statements is coherent and collectively correct in the context of standard OLS properties. The phrase 'All of the above' therefore aligns with the logical aggregation of the previous points.
In summary, each individual statement reflects a valid aspect of OLS properties: finite-sample conditions with n ≥ number of parameters, the definition of asymptotic (large-sample) behavior as n grows without bound, and the alternative naming of asymptotic properties as large-sample properties. The last option essentially synthesizes the first three, and this alignment is what makes 'All of the above' correct.

AS.440.606.80.SP25 M06: Assignment

Which of the following statements is correct? (Read p.163 in Ch5.)

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