If the Residuals of a Regression on a Large Sample

question 19

Multiple Choice

If the residuals of a regression on a large sample are found to be heteroscedastic which of the following might be a likely consequence?
(I) The coefficient estimates are biased
(ii) The standard error estimates for the slope coefficients may be too small
(iii) Statistical inferences may be wrong

• A) (i) only
• B) (ii) and (iii) only
• C) (i), (ii) and (iii)
• D) (i) and (ii) only

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