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In a Regression Model, If Variance of the Dependent Variable

Question 21

Multiple Choice

In a regression model, if variance of the dependent variable, y, conditional on an explanatory variable, x, or Var(y|x) , is not constant, _____.


A) the t statistics are invalid and confidence intervals are valid for small sample sizes
B) the t statistics are valid and confidence intervals are invalid for small sample sizes
C) the t statistics and the confidence intervals are valid no matter how large the sample size is
D) the t statistics and the confidence intervals are both invalid no matter how large the sample size is

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