Question
Non-spherical errors are related
toSolution
If the spherical errors assumption fails to hold, there are two problems with OLS.There is a better estimator available—one that is still unbiased, but is less sensitive to sampling variation (i.e., has lower standard errors). The formula we use to estimate the standard errors of OLS is invalid. Our confidence intervals and hypothesis tests will (usually) be overconfident, overstating the precision of our results.Spherical errors fails when we have either or both of: Heteroskedasticity and Autocorrelation
Vijay has 100 notes of Rs 50 and Rs 100. If his total money is Rs 6500, find the number of Rs 100 notes.
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The incomes of two individuals, 'X' and 'Y', are in the ratio 6:9. 'X' spends 75% of his income, while 'Y' spends 80% of his income. Find the ratio of t...
A bag contains notes of Rs.10, Rs.20, and Rs.50 in the ratio of 1:3:5. If the total value of money in the bag is Rs.1920, find the number of Rs.20 notes.
