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QUESTION 1 Which one of the following assumptions is known as the spherical disturbance assumption? O Euu) - A E(uu') - XIXXy Etuu') = oxy E(uu') = a4 All of the above. None of the above.

QUESTION 1 Which one of the following assumptions is known as the spherical disturbance assumption? O Euu) - A E(uu') - XIXXy Etuu') = oxy E(uu') = a4 All of the above. None of the above.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 1 Which one of the following assumptions is known as the spherical disturbance assumption? E(uu') = 0 E(uu') = XXxy1 E(uu') = =o²xy E(uu') = a2 All of the above. None of the above. QUESTION 2 If the error term covariance matrix is not spherical, but it is diagonal, then you have: O Autocorrelation, but no heteroskedasticity. O Heterskedasticity and autocorrelation. Heteroskedasticity, but no autocorrelation. Both heteroskedasticity and autocorrelation. Neither hetroskedasticity or autocorrelation. QUESTION 3 Which one of the following statements is true for a linear regression model with non-spherical disturbances (i.e. E(uu') = Q): The GLS estimator is inefficient. The OLS estimator is inefficient. The OLS estimator covariance matrix is diagonal. The GLS estimator covariance matrix is block-diagonal. All of the above. None of the above.
Transcribed Image Text:QUESTION 1 Which one of the following assumptions is known as the spherical disturbance assumption? E(uu') = 0 E(uu') = XXxy1 E(uu') = =o²xy E(uu') = a2 All of the above. None of the above. QUESTION 2 If the error term covariance matrix is not spherical, but it is diagonal, then you have: O Autocorrelation, but no heteroskedasticity. O Heterskedasticity and autocorrelation. Heteroskedasticity, but no autocorrelation. Both heteroskedasticity and autocorrelation. Neither hetroskedasticity or autocorrelation. QUESTION 3 Which one of the following statements is true for a linear regression model with non-spherical disturbances (i.e. E(uu') = Q): The GLS estimator is inefficient. The OLS estimator is inefficient. The OLS estimator covariance matrix is diagonal. The GLS estimator covariance matrix is block-diagonal. All of the above. None of the above.
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