Question

    Weighted least square is the Remedial measure for which of the following?

    A Autocorrelation Correct Answer Incorrect Answer
    B Heteroscedasticity Correct Answer Incorrect Answer
    C Multicollinearity Correct Answer Incorrect Answer
    D Specification Bias Correct Answer Incorrect Answer

    Solution

    In the presence of heteroscedasticity, OLS does not give reliable estimates. However, by applying different transformations on the existing variable, reliable estimates can be obtained from it. WLS is one such transformation

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