If you model has heteroskedastic error terms,but you do not know the functional form of the variance equation,what should be done?
A)use White's Robust Estimator
B)use weighted least squares
C)try different functional forms for the variance until the Lagrange Multiplier falls 10%
D)add observations to the dataset and estimate again

Question

Quizplus · Accepted Answer

White's Robust Estimator is specifically designed to handle situations where the functional form of the variance of the error terms is unknown, making it a suitable choice for dealing with heteroskedasticity without needing to specify the variance equation.

If You Model Has Heteroskedastic Error Terms,but You Do Not