In Practice, the Most Difficult Aspect of Feasible WLS Estimation

question 36

Multiple Choice

In practice, the most difficult aspect of feasible WLS estimation is

• A)knowing the functional form of the conditional variance.
• B)applying the WLS rather than the OLS formula.
• C)finding an econometric package that actually calculates WLS.
• D)applying WLS when you have a log-log functional form.

---

Definitions:

Direct Labor Cost

Expenses that are directly attributable to the manufacturing of products, including wages of workers who physically convert materials into finished goods.

Factory Overhead Cost

Indirect costs related to manufacturing, including expenses such as utilities, maintenance, and wages for indirect labor.

Job Order Costing

An accounting method used to track production costs individually for each job or order, making it suitable for customized orders.

Professional Services

Services provided by individuals or firms possessing specialized knowledge and expertise, such as legal, accounting, or consulting services.