Infeasible GLS A)requires too much memory even for today's PCs. B)uses complicated interative techniques. C)cannot be calculated since it also uses quasi differences for X_t. D)assumes the parameters of the error autocorrelation process to be known.

Question

Quizplus · Accepted Answer

Infeasible GLS assumes the parameters of the error autocorrelation process to be known, which is often not the case in practice. Therefore, it is not a practical approach, making option D the correct choice. Options A, B, and C are incorrect as they do not describe the limitation of Infeasible GLS.