e. None of the above choices (a)-(d). 7. Suppose a population regression model is: Y; = Bo + B1X; + u¿. Y;, X¡, and u¡ denote the dependent variable, independent variable, and the error term,...

Statistics

Extracted text: e. None of the above choices (a)-(d). 7. Suppose a population regression model is: Y; = Bo + B1X; + u¿. Y;, X¡, and u¡ denote the dependent variable, independent variable, and the error term, respectively. i indexes each individual observation. ßo and ß, are the OLS estimators, and û; is the regression residual, using a sample of n observations. Which of the following statement is false? a. £7 û; = 0. b. E7 ûzX{ = 0. c. Suppose E (u¡|X¡) # 0 and the correlation between X¡ and u; is zero. Then, the OLS estimator B, is inconsistent. d. The assumption that the correlation between X¡ and u¡ is zero cannot be tested empirically. e. None of the above choices (a)-(d).