Which of the following is true?
A)In ordinary least squares estimation, each observation is given a different weight.
B)In weighted least squares estimation, each observation is given an identical weight.
C)In weighted least squares estimation, less weight is given to observations with a higher error variance.
D)In ordinary least squares estimation, less weight is given to observations with a lower error variance.

Question

Quizplus · Accepted Answer

In weighted least squares estimation, weights are assigned to each observation based on their variance. Observations with higher error variance are assigned lower weight, while observations with lower error variance are assigned higher weight. This is in contrast to ordinary least squares estimation, where all observations are given equal weight. Therefore, option C is the correct answer.

Which of the Following Is True