The WLS Estimator Is Called Infeasible WLS Estimator When

question 35

Multiple Choice

The WLS estimator is called infeasible WLS estimator when

• A)the memory required to compute it on your PC is insufficient.
• B)the conditional variance function is not known.
• C)the numbers used to compute the estimator get too large.
• D)calculating the weights requires you to take a square root of a negative number.

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Definitions:

Pretax Return

The income an investment generates before taxes are taken into account.

Working Capital

Current assets minus current liabilities, representing the liquidity available to a business for day-to-day operations.

Salvage Value

The forecasted residual value of an asset upon completing its lifespan.

Pretax Return

The income or profit earned by a business before any taxes have been deducted.