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Basic Question 0 of 22
In regression with financial data, the most likely result of heteroskedasticity is that the estimated standard errors will too ______ and the t-statistic will be too ______.
II. large, small
III. small, small
IV. large, large
I. small, large
II. large, small
III. small, small
IV. large, large
User Contributed Comments 2
| User | Comment |
|---|---|
| PhiWong | Consistent with question 4. |
| nsmwaura | Leading to Type 1 error(Rejecting null hypothesis while its true) |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
explain the types of heteroskedasticity and how it affects statistical inference;
CFA® 2024 Level II Curriculum, Volume 1, Module 3.