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

Term-definition correspondences are:
(A) Power of a test is (IV), the probability of rejecting a false null hypothesis.
(B) Multicollinearity is (III), the correlation among explanatory variables in a regression.
(C) A biased estimator is (I), where the sample mean differs from the population mean. 
(D) White noise error is (II), errors characterized by zero mean and constant standard deviation. 
Therefore, the correct answer is (b)