Multiple Choice
Correlation of the regression error across observations
A) results in incorrect OLS standard errors.
B) makes the OLS estimator inconsistent, but not unbiased.
C) results in correct OLS standard errors if heteroskedasticity-robust standard errors are used.
D) is not a problem in cross-sections since the data can always be "reshuffled."
Correct Answer:

Verified
Correct Answer:
Verified
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