When determining if there is evidence of a linear relationship between variables, OLS estimators must be __________ for the test to be valid.
A) normally distributed
B) scattered
C) a single variable
D) predicted

Question

Quizplus · Accepted Answer

OLS estimators must be normally distributed for the test to be valid. This assumption allows for the use of t-tests and F-tests to determine the statistical significance of the estimated coefficients, which is crucial for assessing the evidence of a linear relationship between variables.

When Determining If There Is Evidence of a Linear Relationship