Thanks for the reply!
But it seems I was not clear enough about the level of answer I need - see
below for a hopefully more precise version of my query. Of course, pointers to
literature or web sites are highly appreciated, too. I certainly cannot ask
anyone to give lengthy explanations of convoluted problems via the newsgroup. I
only asked here because my textbooks all failed - if you can tell me where to
look it up in e.g. Greene's Econometrics text or similar, I'll do so, even
though Greene and the like is tough going for me.
Robert Dawson schrieb:
> OK, a simple answer:
>
> Given heteroscedastic data, the least-squares method will put
> undue emphasis on trying to fit the line to the widely-scattered part
> of the plot.
Well, I said that I wanted an intuitive explanation. But at the same time, I
need an idea where and why the estimation procedure goes wrong, so pointing at
some specific formulas/terms might be very helpful. I have tried to restate my
exact problems in my reply to Bob Hayden (next thread, same heading). In
particular, one of the problems I have with explanations like the above is why
the wide scatter of residuals and the reflection of those in the estimated
parameters is considered _undue_.
Thanks again, MQ
--
________________________________________________________________
Markus Quandt
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