clt

Hi, I understand that the assumption that the sampling distribution of OLS estimators b0 and b1 is asymptotically normal is a key property. However I'm a bit stuck as to why that is. I assume the magic CLT comes into play here, but I guess there are stil grey areas for me. When we apply the...

Hello, I was reading about the Central Limit Theorem today, in the study notes for Miller chapter 4 (p79 specifically), and I realized that I am unclear about the following: (I) we indicate that the variance of each random variable is σ^2/n. As we have shown in the preceding ochapter, this is...

Hi, Apologies if this is a basic question but when constructing a confidence interval do you only ever use the critical/lookup T values? I also have the Schweser notes which suggests sometimes you'd use the Z-statistic as opposed to the T statistic: Thanks, Tom