Which of the following is true of the OLS t statistics?
A)The heteroskedasticity-robust t statistics are justified only if the sample size is large.
B)The heteroskedasticty-robust t statistics are justified only if the sample size is small.
C)The usual t statistics do not have exact t distributions if the sample size is large.
D)In the presence of homoskedasticity, the usual t statistics do not have exact t distributions if the sample size is small.

Question

Quizplus · Accepted Answer

The heteroskedasticity-robust t statistics are justified for use primarily when the sample size is large because they rely on asymptotic (large sample) properties to produce valid inference in the presence of heteroskedasticity.

Which of the Following Is True of the OLS T