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:

Colonial Social Order

The structuring of society in colonial times, often characterized by a clearly defined hierarchy and division based on class, race, and occupation.

Revolutionary War

The conflict between thirteen British colonies in North America and Great Britain from 1775 to 1783, resulting in the independence of the colonies and the formation of the United States.

Inequality

Inequality refers to the uneven distribution of resources, opportunities, and treatments among individuals or groups within a society.

Modest Wealth

A term describing individuals or families who possess enough resources for a comfortable but not lavish lifestyle.