What are the consequences of using least squares when heteroskedasticity is present?
A) no consequences,coefficient estimates are still unbiased
B) confidence intervals and hypothesis testing are inaccurate due to inflated standard errors
C) all coefficient estimates are biased for variables correlated with the error term
D) it requires very large sample sizes to get efficient estimates
Correct Answer:
Verified
Q1: How should you estimate a model with
Q3: (See graphs of Model A -
Q4: What is the tradeoff researchers face when
Q5: A linear probability model is likely
Q6: If you run a LM test
Q7: (See graphs of Model A - D)The
Q8: Which test for heteroskedasticity should you use
Q9: When using WLS to correct for heteroskedasticity,what
Q10: (See graphs of Model A -
Q11: If your initial econometric model has heteroskedastic
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