Another confusing misprint in S&W

Thanks again to Trond V., who discovered yet another false statement in Stock and Watson.

On page 257 they write that the estimated variance of B1 divided by the true value of B1 will converge to -1

This is of course not correct. Since the numerator will converge towards the true value (which is the denominator), this will converge towards 1 and not -1. 

Published May 9, 2014 3:29 PM - Last modified May 9, 2014 3:30 PM