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Author Question: The presence of correlated error terms creates problems for inference based on OLS. These can be ... (Read 152 times)

awywial

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on: Jun 29, 2018
The presence of correlated error terms creates problems for inference based on OLS. These can be overcome by
 
  A) using HAC standard errors.
  B) using heteroskedasticity-robust standard errors.
  C) reordering the observations until the correlation disappears.
  D) using homoskedasticity-only standard errors.

Question 2

The leading example of sampling schemes in econometrics that do not result in independent observations is
 
  A) cross-sectional data.
  B) experimental data.
  C) the Current Population Survey.
  D) when the data are sampled over time for the same entity.


trog

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Answer: A

Answer to Question 2

Answer: D


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