Economics · Econometrics
If the error (disturbance) term in a regression model is heteroscedastic, which of the following statements are true? A. OLS estimators are biased. B. OLS estimators do not have the minimum variance property (not BLUE). C. Tests of significance based on standard OLS estimates will be inaccurate. D. OLS estimators are inconsistent. Choose the correct option:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A and D are true
- 2B and C are true✓
- 3A and C are true
- 4A and B are true
Correct answer
B and C are true
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