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Author Question: When the errors are heteroskedastic, then A) WLS is efficient in large samples, if the functional ... (Read 161 times)

Yolanda

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on: Jun 29, 2018
When the errors are heteroskedastic, then
 
  A) WLS is efficient in large samples, if the functional form of the heteroskedasticity is known.
  B) OLS is biased.
  C) OLS is still efficient as long as there is no serial correlation in the error terms.
  D) weighted least squares is efficient.

Question 2

If, in addition to the least squares assumptions made in the previous chapter on the simple regression model, the errors are homoskedastic, then the OLS estimator is
 
  A) identical to the TSLS estimator.
  B) BLUE.
  C) inconsistent.
  D) different from the OLS estimator in the presence of heteroskedasticity.


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Kaytorgator

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

Answer: A

Answer to Question 2

Answer: B


Yolanda

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

xiazhe

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Reply 3 on: Yesterday
Wow, this really help

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