By comparing Tables Six and Nine, discuss the impacts on the estimation results if heteroskedasticity is p

A First Course in Probability (10th Edition)
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 By comparing Tables Six and Nine, discuss the impacts on the estimation results if
heteroskedasticity is present. 

Table Six
Dependent Variable: LWAGE
Method: Least Squares
Sample: 1 1260
Included observations: 1260
Variable
Coefficient
Std. Error
t-Statistic
Prob.
0.081437
3.407558
0.0007
0.0000
0.0000
0.277500
EXPER
0.017670
0.001253
0.005714
14.10546
EDUC
UNION
0.079169
0.238594
13.85586
0.033222
7.181775
0.0000
Transcribed Image Text:Table Six Dependent Variable: LWAGE Method: Least Squares Sample: 1 1260 Included observations: 1260 Variable Coefficient Std. Error t-Statistic Prob. 0.081437 3.407558 0.0007 0.0000 0.0000 0.277500 EXPER 0.017670 0.001253 0.005714 14.10546 EDUC UNION 0.079169 0.238594 13.85586 0.033222 7.181775 0.0000
Table Nine
Dependent Variable: LWAGE
Method: Least Squares
Sample: 1 1260
Included observations: 1260
Huber-White-Hinkley (HC1) heteroskedasticity consistent standard
errors and covariance
Variable
Coefficient
Std. Error
t-Statistic
Prob.
0.277500
0.083471
3.324504
0.0009
EXPER
0.017670
0.001251
14.12661
0.0000
EDUC
0.079169
0.005872
13.48330
0.0000
UNION
0.238594
0.030783
7.750763
0.0000
Transcribed Image Text:Table Nine Dependent Variable: LWAGE Method: Least Squares Sample: 1 1260 Included observations: 1260 Huber-White-Hinkley (HC1) heteroskedasticity consistent standard errors and covariance Variable Coefficient Std. Error t-Statistic Prob. 0.277500 0.083471 3.324504 0.0009 EXPER 0.017670 0.001251 14.12661 0.0000 EDUC 0.079169 0.005872 13.48330 0.0000 UNION 0.238594 0.030783 7.750763 0.0000
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