Which of the Following Is a Reason Why Estimating the Slope

question 5

Multiple Choice

Which of the following is a reason why estimating the slope and intercept of a simple linear regression line using the least absolute deviations (LAD) approach is not as common as OLS?

• A) The objective function for LAD is less intuitive than for OLS.
• B) LAD suffers from heteroskedasticity.
• C) Taking the absolute value of residuals in most software programs is difficult.
• D) The solution for LAD isn't always unique.