Author Question: In practice, you may want to use the OLS estimator instead of the WLS because A) ... (Read 175 times)

colton · **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