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Which of the Following Statements Is True

Question 3

Multiple Choice

Which of the following statements is true?


A) Prais-Winsten and Cochrane-Orcutt transformations are consistent when explanatory variables are not strictly exogenous.
B) The SC-robust standard errors cannot be estimated in models with lagged dependent variables.
C) The SC-robust standard errors work better after quasi-differencing a time series that is expected to be serially correlated.
D) Estimation of SC-robust standard errors is independent of the sample size.

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