Which of the following statement(s) is correct? a- None b- The least squares estimator will have a larger variance compared to the variance obtained when serially correlated errors are correctly modelled. This will lead to less power of hypothesis tests and higher probability of committing a type II error c-The least squares estimator will have a smaller variance compared to the variance obtained when serially correlated errors are correctly modelled. This will lead to greater power of hypothesis tests and lower probability of committing a type II error d. The least squares estimator will have a smaller variance compared to he variance obtained when serially correlated errors are correctly modelled. This will lead to greater power of hypothesis tests and lower probability of committing a type I error
Which of the following statement(s) is correct?
a- None
b- The least squares estimator will have a larger variance compared to the variance obtained when serially correlated errors are correctly modelled. This will lead to less power of hypothesis tests and higher probability of committing a type II error
c-The least squares estimator will have a smaller variance compared to the variance obtained when serially correlated errors are correctly modelled. This will lead to greater power of hypothesis tests and lower probability of committing a type II error
d. The least squares estimator will have a smaller variance compared to he variance obtained when serially correlated errors are correctly modelled. This will lead to greater power of hypothesis tests and lower probability of committing a type I error
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