Answer to Question #247094 in Economics for ray

Question

1. Are these statements true, false, or uncertain? Justify.

1. The stochastic error term u_i and the residual term e_i mean the same thing.
2. The Population Regression Function (PRF) gives the value of the dependent variable corresponding to each value of the independent variable.
3. A linear regression model means a model linear in the variables.
4. In the linear regression model, the explanatory variable is the cause and the dependent variable is the effect.
5. The conditional and the unconditional mean of the random variable are the same thing.
6. The regression coefficients, the bs, are random variables, whereas the s are the parameters.
7. The slope coefficient in a simple regression model measures the slope of Y per unit change in X.
8. In practice, the two-variable regression model is useless because the behavior of a dependent variable can never be explained by a single explanatory variable.
9. The sum of the deviation of a random variable from its mean value is always zero.

Answer 1

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