With Heteroskedastic Errors, the Weighted Least Squares Estimator Is BLUE

question 4

Multiple Choice

With heteroskedastic errors, the weighted least squares estimator is BLUE. You should use OLS with heteroskedasticity-robust standard errors because

• A)this method is simpler.
• B)the exact form of the conditional variance is rarely known.
• C)the Gauss-Markov theorem holds.
• D)your spreadsheet program does not have a command for weighted least squares.

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Definitions:

Delta Waves

The type of brain waves that are primarily associated with deep sleep and are the slowest with the highest amplitude seen in an EEG.

Psychological Dependence

A condition characterized by an emotional or mental reliance on a substance or behavior, often leading to cravings and distress if the object of dependence is absent.

Withdrawal

The process of reducing or eliminating substance use or addictive behaviors, which can result in physiological and psychological symptoms in individuals who are dependent.

Learned Behavior

Actions or reactions acquired through experience, contrasted with innate behaviors that are genetically hardwired.