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Author Question: In practice, you may want to use the OLS estimator instead of the WLS because A) ... (Read 169 times)

colton

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on: Jun 29, 2018
In practice, you may want to use the OLS estimator instead of the WLS because
 
  A) heteroskedasticity is seldom a realistic problem
  B) OLS is easier to calculate
  C) heteroskedasticity robust standard errors can be calculated
  D) the functional form of the conditional variance function is rarely known

Question 2

If the functional form of the conditional variance function is incorrect, then
 
  A) the standard errors computed by WLS regression routines are invalid
  B) the OLS estimator is biased
  C) instrumental variable techniques have to be used
  D) the regression R2 can no longer be computed


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ambernicolefink

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

Answer: D

Answer to Question 2

Answer: A


colton

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Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

xiaomengxian

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

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