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Author Question: When models exhibit heteroscedasticity, least squares is the most efficient procedure for estimating ... (Read 31 times)

lbcchick

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on: Jun 24, 2018
When models exhibit heteroscedasticity, least squares is the most efficient procedure for estimating the coefficients of the regression model.
 
  Indicate whether the statement is true or false

Question 2

On the basis of a random sample the null hypothesis: H0 :   0 is tested against the alternative: H1 :  > 0 and the null hypothesis is not rejected at the 10 significance level.
 
  Does this necessarily imply that 0 is contained in the 90 confidence interval for ?


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mk6555

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Reply #1 on: Jun 24, 2018
Answer to Question 1

FALSE

Answer to Question 2

No, the 90 confidence level provides for 5 of the area in either tail. This does not correspond to a one-tailed hypothesis test with  = 10 which has 10 of the area in one of the tails.


lbcchick

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Reply 2 on: Jun 24, 2018
Great answer, keep it coming :)

gcook

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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