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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Definitions:

Z-Score

A statistical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.

Sugar

A sweet-flavored substance, typically derived from sugarcane or sugar beets, used commonly as a sweetener in food and drinks.

Standard Deviation

A statistical measure indicating the amount of variation or dispersion of a set of values.

Mean Weights

The average weight calculated by adding all the weights together and dividing by the number of weights.