Weighted Least Squares Estimation Is Used Only When _____

question 24

Multiple Choice

Weighted least squares estimation is used only when _____.

• A)the dependent variable in a regression model is binary
• B)the independent variables in a regression model are correlated
• C)the error term in a regression model has a constant variance
• D)the functional form of the error variances is known

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Definitions:

Net Working Capital

Net working capital is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.

Net Fixed Assets

The value of all fixed assets in a company, such as property, plant, and equipment, after accounting for depreciation and amortization.

Cash Flow From Assets

Is the total amount of money being transferred into and out of a business, specifically from its operational, investment, and financial activities.

Operating Cash Flow

The amount of cash generated by a company’s normal business operations.