Which of the following is a reason why estimating the slope and intercept of a simple linear regression line using the least absolute deviations (LAD) approach is not as common as OLS?
A) The objective function for LAD is less intuitive than for OLS.
B) LAD suffers from heteroskedasticity.
C) Taking the absolute value of residuals in most software programs is difficult.
D) The solution for LAD isn't always unique.

Question

Quizplus · Accepted Answer

The main reason why LAD is not as common as OLS is that the solution for LAD isn't always unique, which can make it harder to interpret and compare results across studies. Additionally, the objective function for LAD may be less intuitive for some researchers, but this is not a major barrier to its use. Heteroskedasticity can affect both OLS and LAD, and taking the absolute value of residuals is a straightforward calculation that is supported by most software programs.

Which of the Following Is a Reason Why Estimating the Slope