(c) Consider the linear regression model linc = Bo + B₁exper+ Brexper² + B married + Bawidowed + Bsdivorced + Bemale (1) +B7 college + Brimmigrant + u. i) Do you think it is likely that the error term in (1) is conditionally homoskedastic? Briefly explain. i) Is there any informal evidence to suggest that the error term in (1) may be conditionally heteroskedastic? Briefly explain

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(c) Consider the linear regression model
linc = Bo + Biexper + Bzexper² + Bzmarried + Bawidowed + Bsdivorced + Bomale (1)
+ B7 college + Bzimmigrant + u.
i) Do you think it is likely that the error tem in (1) is conditionally homoskedastic? Briefly
explain.
ii) Is there any informal evidence to suggest that the error term in (1) may be conditionally
heteroskedastic? Briefly explain
Transcribed Image Text:(c) Consider the linear regression model linc = Bo + Biexper + Bzexper² + Bzmarried + Bawidowed + Bsdivorced + Bomale (1) + B7 college + Bzimmigrant + u. i) Do you think it is likely that the error tem in (1) is conditionally homoskedastic? Briefly explain. ii) Is there any informal evidence to suggest that the error term in (1) may be conditionally heteroskedastic? Briefly explain
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