Which of the following are not a consequence of heteroskedasticity? OLS is biased and inconsistent Usual of default standard errors will be invalid OLS will be the Best Linear Unbiased Estimator Usual confidence intervals will not be valid
Added by Robert A.
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OLS is biased and inconsistent: This statement is incorrect. Heteroskedasticity does not cause bias or inconsistency in the OLS estimators. The OLS estimators remain unbiased and consistent even in the presence of heteroskedasticity. Show more…
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