If the error term covariance matrix is not spherical, but it is diagonal, then you have: Autocorrelation, but no heteroskedasticity. Heterskedasticity and autocorrelation. Heteroskedasticity, but no autocorrelation. Both heteroskedasticity and autocorrelation. Neither hetroskedasticity or autocorrelation.

Answered: If the error term covariance matrix is…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 6SQ

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QUESTION 1 Which one of the following assumptions is known as the spherical disturbance assumption? E(uu') = 0 E(uu') = XXxy1 E(uu') = =o²xy E(uu') = a2 All of the above. None of the above. QUESTION 2 If the error term covariance matrix is not spherical, but it is diagonal, then you have: O Autocorrelation, but no heteroskedasticity. O Heterskedasticity and autocorrelation. Heteroskedasticity, but no autocorrelation. Both heteroskedasticity and autocorrelation. Neither hetroskedasticity or autocorrelation. QUESTION 3 Which one of the following statements is true for a linear regression model with non-spherical disturbances (i.e. E(uu') = Q): The GLS estimator is inefficient. The OLS estimator is inefficient. The OLS estimator covariance matrix is diagonal. The GLS estimator covariance matrix is block-diagonal. All of the above. None of the above.
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		Autocorrelation, but no heteroskedasticity.
		Heterskedasticity and autocorrelation.
		Heteroskedasticity, but no autocorrelation.
		Both heteroskedasticity and autocorrelation.
		Neither hetroskedasticity or autocorrelation.