3. Consider the linear probability model Y₁ = Bo+B₁Xi+ui, where Pr(Y₁ =1|Xi) = Bo +3₁ Xi.(a) Show that E(u₂|X₂) = 0.(b) Show that Var(u₁|X;) = (Bo + B₁X;)[1 − (Bo + B₁X;)].(c) Is ui conditionally heteroskedastic? Is u heteroskedastic?(d) Derive the likelihood function.

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3. Consider the linear probability model Y₁ = Bo+B₁Xi+ui, where Pr(Y₁ = 1|Xi) = Bo +3₁ Xi. (a) Show that E(u₂|X₂) = 0. (b) Show that Var(u₁|X;) = (Bo + B₁X;)[1 − (Bo + B₁X;)]. (c) Is ui conditionally heteroskedastic? Is u heteroskedastic? (d) Derive the likelihood function.