You run the regression y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i Во 1 1i + ε i • variance of ε turns out to be i The proportional to 4x . Write down a 1i transformed, homoskedastic equation.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter4A: Problems In Applying The Linear Regression Model
Section: Chapter Questions
Problem 5E
Question
You run the regression
y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i
Во
1 1i
+ ε
i
•
variance of ε turns out to be
i
The
proportional to 4x
. Write down a
1i
transformed, homoskedastic
equation.
Transcribed Image Text:You run the regression y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i Во 1 1i + ε i • variance of ε turns out to be i The proportional to 4x . Write down a 1i transformed, homoskedastic equation.
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