Instead of using WLS, the researcher in the previous problem decides to compute the OLS estimator using

Question:

Instead of using WLS, the researcher in the previous problem decides to compute the OLS estimator using only the observations for which \(x \leq 10\), then using only the observations for which \(x>10\), and then using the average the two OLS of estimators. Is this estimator more efficient than WLS?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Econometrics

ISBN: 9780134461991

4th Edition

Authors: James Stock, Mark Watson

Question Posted: