Which of the Following Is a Difference Between Least Absolute

question 27

Multiple Choice

Which of the following is a difference between least absolute deviations (LAD) and ordinary least squares (OLS) estimation?

• A)OLS is more computationally intensive than LAD.
• B)OLS is more sensitive to outlying observations than LAD.
• C)OLS is justified for very large sample sizes while LAD is justified for smaller sample sizes.
• D)OLS is designed to estimate the conditional median of the dependent variable while LAD is designed to estimate the conditional mean.

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