In the Presence of Heteroskedasticity, and Assuming That the Usual

question 9

Multiple Choice

In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is

• A)efficient.
• B)BLUE.
• C)unbiased and consistent.
• D)unbiased but not consistent.

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Definitions:

Mixed Cost

A cost that contains both variable and fixed cost elements, making it partially dependent on the level of output or activity.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.

Variable Cost

Expenses that change in proportion to the production level or the amount of output.

Period Cost

Period cost refers to any cost that is not directly tied to the production of goods and is expensed in the accounting period in which it is incurred, such as selling, general, and administrative expenses.