If the Errors Are Heteroskedastic, Then

question 36

Multiple Choice

If the errors are heteroskedastic, then

• A)OLS is BLUE.
• B)WLS is BLUE if the conditional variance of the errors is known up to a constant factor of proportionality.
• C)LAD is BLUE if the conditional variance of the errors is known up to a constant factor of proportionality.
• D)OLS is efficient.

---

Definitions:

Limited War

A conflict with restricted objectives, scope, or means, such as limiting the geographical area of the fight or avoiding the use of certain weapons.

Korean War

A conflict between North and South Korea from 1950 to 1953, in which North Korea, supported by China and the Soviet Union, and South Korea, supported by the United Nations and primarily the USA, fought to a stalemate.

New Look

A defense strategy under President Eisenhower that emphasized the strategic use of nuclear weapons while reducing conventional military forces.

Nuclear Weapons

Explosive devices whose destructive power derives from nuclear reactions, capable of causing massive destruction and loss of life.