Mark the following statements TRUE or FALSE:

(A)

E[u ] E[u ] i 2

j 2

for all i ≠ j is the definition of heteroskedasticity.

(B) The “culprit variable” is the dependent variable in a heteroskedastic regression.

(C) In the presence of heteroskedasticity, tests of significance must be carried out with caution since the T-ratios of the structural parameters are biased.

(D) Application of the Newey-West technique will alter the estimate of the SER.

(E) Application of the Newey-West technique will alter the estimates of the structural parameters.