Estimation by WLS

question 44

Multiple Choice

Estimation by WLS

• A)although harder than OLS, will always produce a smaller variance.
• B)does not mean that you should use homoskedasticity-only standard errors on the transformed equation.
• C)requires quite a bit of knowledge about the conditional variance function.
• D)makes it very hard to interpret the coefficients, since the data is now weighted and not any longer in its original form.

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Definitions:

External Locus

A perspective where an individual believes that their life's outcomes are controlled by external forces or factors beyond their personal control.

Alarm Stage

The initial phase of the stress response, where the body recognizes a threat and prepares to face or flee from it.

Selye's General Adaptation Syndrome

A model describing the body's physiological response to stress through various stages: alarm reaction, stage of resistance, and stage of exhaustion, highlighting the body's attempt to adapt to stress.

Parasympathetic Nervous System

A division of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity, facilitating a state of rest and digest.