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Estimation by WLS

Question 44

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Estimation by WLS


A) although harder than OLS, will always produce a smaller variance.
B) does not mean that you should use homoskedasticity-only standard errors on the transformed equation.
C) requires quite a bit of knowledge about the conditional variance function.
D) makes it very hard to interpret the coefficients, since the data is now weighted and not any longer in its original form.

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