The Generalized Least Square (GLS) Is an Efficient Procedure That

question 19

Multiple Choice

The generalized least square (GLS) is an efficient procedure that weights each squared residual by the:​

• A)​conditional variance of u_i given x_i.
• B)​expected value of u_i given x_i.
• C)​inverse of the conditional variance of u_i given x_i.
• D)​square root of the inverse of the conditional variance of u_i given x_i.

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