Question 07.02: State with brief reasons whether the following statements are true, false, or uncertain.

• a. OLS in an estimating procedure that minimizes the sum of the errors squared (as below)
  
  
• b. The assumptions made by the classical linear regression model (CLRM) are not necessary to compute OLS estimators.
• c. The theoretical justification for OLS is provided by the Gauss-Markov theorem
• d. In the two-variable PRF, b2 is likely to be a more accurate estimate of B2 if the disturbances ui follow the normal distribution.
• e. The OLS estimators b1 and b2 each follow the normal distribution only if ui follows the normal distribution.
• f. R^2 is the ratio of TSS / ESS.
• g. For a given alpha and d.f., if the computed ItI exceeds the critical t value, we should accept the null hypothesis.
• h. The coefficient of correlation, r, has the same sign as the slope coefficient b2.
• i. The p value and the level of significance, α, mean the same thing.

Answers here in forum or here in wiki.

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