The GLS Estimator

question 35

Multiple Choice

The GLS estimator

• A)is always the more efficient estimator when compared to OLS.
• B)is the OLS estimator of the coefficients in a transformed model, where the errors of the transformed model satisfy the Gauss-Markov conditions.
• C)cannot handle binary variables, since some of the transformations require division by one of the regressors.
• D)produces identical estimates for the coefficients, but different standard errors.

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Definitions:

Experimental Study

A research method involving the manipulation of variables to test hypotheses and observe the effects on an outcome.

Cohesiveness

The degree to which members of a group are attracted to one another and motivated to stay in the group.

Randomly Assign

The process of allocating people or resources to groups or categories in a way that lacks any specific pattern, order, or objective.

Systems Theory Approach

A perspective that views entities as open systems interacting with their environments and emphasizes the interrelatedness of components within an entity.