dinesh.sundrani Wrote: ------------------------------------------------------- > mcpass was the closest to this one. I did an ‘A’ o > this too. Since heteroskedasticity and > multicollinearity don’t affect the estimate of the > regression parameters, but they surely do distort > the standard errors and hence the t-values and > hence the inferences we draw from those > statistical procedures. So only ‘serial > correlation’ should have been the answer. But they > say the answer is D and the reason they have for > Serial Correlation not affecting the estimates is > - “it’s only an issue when one of the independent > variables is a lagged value of the dependent > variable” > > So how the heck did they visualize that the > regression equation did not have an independent > variable that was a lagged version of the > dependent variable, without the > regression-equation given in the question. > > I still feel that answer should have been A and > not D (because of poor/ inaccurate wording) — > Thoughts?? Monki, Above is the answer and the reasoning. Discussion followed in later posts.