Consequences of Heteroscedasticity 1.OLS estimators are still linear 2.
{"Image DocumentName": "Consequences of Heteroscedasticity", "Image ImageDescription": "OLS estimators are still linear. OLS estimators are still unbiased. But they no longer have minimum variance. They are not longer BLUE. Therefore we run the risk of drawing wrong conclusions when doing hypothesis testing (Ho:b=0) Solutions: variable transformation, develop a new model that takes into account no linearity (logarithmic function).", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}