In a Regression Model,if Variance of the Dependent Variable,y,conditional on an Explanatory

question 7

Multiple Choice

In a regression model,if variance of the dependent variable,y,conditional on an explanatory variable,x,or Var(y|x) ,is not constant,_____.

• A)the t statistics are invalid and confidence intervals are valid for small sample sizes
• B)the t statistics are valid and confidence intervals are invalid for small sample sizes
• C)the t statistics and confidence intervals are both invalid no matter how large the sample size is
• D)the t statistics confidence intervals are valid no matter how large the sample size is

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