Explain how we can handle heteroskedasticity by using Weighted Least Squares?

The least-squares regression output reports the p-value for a two-sided hypothesis test. True False

The article "A Robust Optimization Approach for the Capacitated Vehicle Routing Problem with Demand Uncertainty" (I. Sungur, F. Ordonez, and M. Dessouky, IIE Transactions, 2008:509-523) discusses methods to reduce transportation costs while satisfying demands. In one study, the percent demand that is unmet (y) and the percent of vehicle capacity (x) needed to meet the expected demand were recorded for 27 different scenarios. The results are presented in the following table. х У 0.5 82 0.0 0.7 1.3 0.8 11 0.9 1.2 1.3 0.2 0.8 1.4 0.9 1.4 0.4 1.7 93 11 93 0.8 90 0.3 0.2 1.0 1.0 89 1.0 93 1.3 91 1.3 94 1.2 94 0.7 Compute the least-squares line for predicting unmet demand (y) from vehicle capacity (X). b. Compute 95% confidence intervals for B, and B,- Predict the unmet demand when the vehicle capacity is 93%. d. a. c. Find a 95% confidence interval for the mean unmet demand when the vehide capacity is 93%. Find a 95% prediction interval for the unmet demand for a scenario whose vehicle…

Heteroscedasticity   Stigler and Friedland (1983) conducted a study to determine whether the separation of company control from company ownership affects company profits. Using data from 69 companies in the United States, the authors estimate the following model:   profiti = α + β1asseti + β2management_controli + ei Where i is company and: profiti = annual profit (in million dollar) asseti = company asset (in million dollar) management_controli = dummy variable that is worth one if the control of the company is held by the manager   The regression results are presented in the table in the picture   a. Explain whether the statements below are TRUE, FALSE, or CANNOT BE DETERMINED. "If there is a heteroscedasticity problem, the confidence interval of the OLS estimator is not valid." b. Determine the 95% confidence interval for the parameter 2, what can you conclude?