The presence of correlated error terms creates problems for ...

[awywial]

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]

Answer to Question 1

Answer: A

Answer to Question 2

Answer: D