Weighted Least Squares is performed by
A)re-weighting the estimated standard errors from the OLS regression.
B)re-weighting the estimated slope coefficients from the OLS regression.
C)including the command ",robust" in the estimation.
D)re-weighting the original data so that OLS provides estimated standard errors with minimum variance.

Question

Quizplus · Accepted Answer

Weighted Least Squares (WLS) is a method used to handle heteroscedasticity in regression analysis by re-weighting the original data. This approach ensures that the Ordinary Least Squares (OLS) estimation process yields standard errors with minimum variance, improving the efficiency of the estimates.

Weighted Least Squares Is Performed by