When the Errors Are Heteroskedastic, Then

question 33

Multiple Choice

When the errors are heteroskedastic, then

• A)WLS is efficient in large samples, if the functional form of the heteroskedasticity is known.
• B)OLS is biased.
• C)OLS is still efficient as long as there is no serial correlation in the error terms.
• D)weighted least squares is efficient.

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Definitions:

Loud Noise

A type of environmental stimulus characterized by high amplitude sound waves, which can potentially cause hearing damage or stress.

Unconditioned Response

Is an automatic, natural reaction to a stimulus that occurs without prior conditioning or learning, such as salivating in response to food.

Fear of Loud Noise

An instinctual or conditioned response to loud sounds, often involving feelings of anxiety or panic.

Conditioned Response

A learned reaction to a previously neutral stimulus that results from repeated exposure to a stimulus paired with a response.