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a) In using cross-sectional data to investigate the demand for food, prices of food are likely to exhibit little or no variation which leads to

a) In using cross-sectional data to investigate the demand for food, prices of food are likely to exhibit little or no variation which leads to biased econometric estimates of the parameters of the demand equation.


b) If the disturbances in a classical linear regression model are not normally distributed, then the OLS estimator is no longer BLUE but it is still unbiased.

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