Question

Match List-I with List-II

List-I(Statistical Concepts)		List-II(Description)
A	Power of a test	I	1- probability of making type II error
B	Multicollinearity	II	Where the sample mean differs from the population mean
C	Biased estimator	III	Correlation between explanatory variables in a regres sion
D	White noise error	IV	Errors with zero mean and constant standard deviation

Choose the correct answer from the options given below

• A. (A)- (I), (B)- (II), (C)- (III), (D)- (IV)
• B. (A)- (I), (B)- (III), (C)- (II), (D)- (IV)
• C. (A)- (IV), (B)- (II), (C)- (III), (D)- (I)
• D. (A)- (II), (B)- (I), (C)- (IV), (D)- (III)

Hint:

Understanding the assumptions and properties of econometric models is essential for correctly identifying their characteristics.

Answer 1

The Correct Option is B

The matching of terms with definitions is:
(A) Power of a test corresponds to (IV), the probability of rejecting a false null hypothesis. 
(B) Multicollinearity corresponds to (III), the correlation between explanatory variables in a regression.
(C) Biased estimator corresponds to (I), where the sample mean differs from the population mean. 
(D) White noise error corresponds to (II), errors with zero mean and constant standard devia tion. 
Thus, the correct answer is (b)