test 8 Flashcards
1
Q
Which of the following methods might be used to eliminate heteroscedasticity in the residuals of an estimated equation
A
estimating the model in log-linear form
2
Q
he Gauss-Markov theorem defines conditions under which
A
the OLS estimator has the lowest variance in the class of linear unbiased estimators
3
Q
Which of the following pair of assumption is necessary to prove unbiasedness of the OLS estimator?
A
the expected value of the error is zero and the X variable is non-stochasti
4
Q
Which of the following would you recommend before deciding if X has a significant effect on Y ?
A
re-estimate the model in difference for
