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What does the „i.i.d.” assumption imply? Something is…

What is one key “downside” of MLE (Maximum Likelihood Estimation)?

IV Recap and MLE I

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1
What is one key “downside” of MLE (Maximum Likelihood Estimation)?
Asymptotically ML-estimators of a normal distribution are OLS-estimators
The ML theory is particularly suited for small samples
ML-estimators are inconsistent if the distribution is mis-specified
ML-estimator guarantee that the probability to get the sample is maximised
2
What does the „i.i.d.” assumption imply? Something is…
… independentand identically distributed
… independent and irrationally distributed
… independent and ideosyncratically distributed
… irregular and independently distributed
3
What is the “kernel” of a function?
Sub-part of the function that does NOT contain a constant term
The first derivative of the function
Sub-part of the function that does contain a constant term
The second derivative of the function
4
What is one key “downside” of GMM (Generalized Methods of Moments)?
Only certain moments of the distribution but notthe distribution as a whole need to be known
Isonly applicable to linear relationships between variables
No standardized approach for parameterestimation and inference statistics
The GMM resulting from the model is three timescontinuously differentiable
5
Recap: What is NOT a valid assumption for an Instrumental Variable?
InstrumentZ is correlated medium with the regressor X
InstrumentZ is correlated weakly with the error term
Theregressor X is correlated with the error term
InstrumentZ is not correlated with the dependent variable Y
6
True or False: The IV-standard errors are larger than their OLS-relatives
True
False