If the functional form of the conditional variance function is incorrect, then
A) the standard errors computed by WLS regression routines are invalid
B) the OLS estimator is biased
C) instrumental variable techniques have to be used
D) the regression R2 can no longer be computed
Answer: A
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Real GDP per person averaged $150 a year (in 2009 dollars) from 1,000,000 BC until 1620. During this time there was a period when it rose to ________ around ________ because ________
A) $190; 500 BC; of the gains from human capital while Aristotle and Plato were teaching in Athens B) $210; 1620; the Pilgrim Fathers began to arrive in the Americas C) a 1-million year high; the 1340s; the Black Death gripped Europe D) $140; 400 BC; the Roman Empire collapsed E) $210; 1492; Columbus sailed to the Americas
Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run
a. True b. False Indicate whether the statement is true or false
Kimani sells life insurance and is considering buying a $50,000 Cadillac for business purposes (thus, the expense reduces her taxable income). If Kimani is in the 40 percent marginal tax bracket, how much after-tax income will she have to give up in order to enjoy the Cadillac?
a. $20,000 b. $30,000 c. $25,000 d. $70,000
Compounding:
A. is beneficial to borrowers, but costly to savers. B. is beneficial to savers, but costly to borrowers. C. is costly to both borrowers and savers. D. is beneficial to borrowers and savers alike.