Assume that the variance depends on a third variable,Wi,which does not appear in the regression function,and that var(ui|Xi,Wi) = θ0+θ1 .One way to estimate θ0 and θ1consistently is to regress
A) i on
using OLS
B) i on
using OLS
C) on
using OLS
D) on
using OLS
Correct Answer:
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Q1: Asymptotic distribution theory is
A)not practically relevant, because
Q8: If the errors are heteroskedastic, then
A)the OLS
Q16: Under the five extended least squares assumptions,the
Q17: It is possible for an estimator of
Q19: The OLS estimator is a linear estimator,
Q22: If the functional form of the conditional
Q25: Homoskedasticity means that Q27: (Requires Appendix material)If X and Y are Q31: One of the earlier textbooks in econometrics, Q40: Discuss the properties of the OLS estimator
A)var(ui|Xi)=
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