If OLS estimators satisfy asymptotic normality, it implies that: A)they are approximately normally distributed in large enough sample sizes. B)they are approximately normally distributed in samples with less than 10 observations. C) they have a constant mean equal to zero and variance equal to ². D) they have a constant mean equal to one and variance equal to .

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Quizplus · Accepted Answer

If OLS estimators satisfy asymptotic normality, it means that in large enough sample sizes, they are approximately normally distributed with mean equal to the true population parameter and variance equal to a function of the variance of the error term in the regression model.

If OLS Estimators Satisfy Asymptotic Normality, It Implies That