Which of the Following Is the Reason Why Standard Errors

question 9

Multiple Choice

Which of the following is the reason why standard errors measured by OLS differ from standard errors measured through Prais-Winsten transformation?

• A)OLS standard errors account for serial correlation, whereas Prais-Winsten estimations do not.
• B)Prais-Winsten standard errors account for serial correlation, whereas OLS estimations do not.
• C)Prais-Winsten standard errors account for heteroskedasticity, whereas OLS estimations do not.
• D)OLS standard errors account for heteroskedasticity, whereas Prais-Winsten estimations do not.

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