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      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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