Suppose That the Conditional Variance Is Var(ui|Xi)= λH(Xi)where λ Is

question 29

Multiple Choice

Suppose that the conditional variance is var(ui|Xi) = λh(Xi) where λ is a constant and h is a known function.The WLS estimator is

• A)the same as the OLS estimator since the function is known
• B)can only be calculated if you have at least 100 observations
• C)the estimator obtained by first dividing the dependent variable and regressor by the square root of h and then regressing this modified dependent variable on the modified regressor using OLS
• D)the estimator obtained by first dividing the dependent variable and regressor by h and then regressing this modified dependent variable on the modified regressor using OLS

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Definitions:

Multiproduct Break-Even

An analysis used to determine the point at which total revenue equals total costs for multiple products, indicating no profit or loss.

Weighted Contribution

A calculation that assigns different weights or importance to various items or activities based on their contribution to the total.

Crossover

In genetics, the exchange of genetic material between chromosomes during meiosis; in other fields, it refers to a point where two or more different categories or entities meet.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance premiums.