Question: 18.1 Suppose that assumption 4 in Key Concept 18.1 is true but you construct a 95% confidence interval for b1 using the heteroskedastic-robust standard error

18.1 Suppose that assumption 4 in Key Concept 18.1 is true but you construct a 95%

confidence interval for b1 using the heteroskedastic-robust standard error in a large sample. Would this confidence interval be valid asymptotically in the sense that it contained the true value of b1 in 95% of all repeated samples for large n?

Suppose instead that assumption 4 in Key Concept 18.1 is false but you construct a 95% confidence interval for b1 using the homoskedasticity-only standard error formula in a large sample. Would this confidence interval be valid asymptotically?

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