Consider the following estimated regression with a sample of size n=50. AHE = -2.44 – 1.57 » DFemale + 0.27 - DMarried + 0.59 • Educ + 0.04 • Exper, where AHE indicates average hourly earning of the individual, DFemale is a dummy variable indicating gender, DMarried is a dummy variable indicating marital status, Educ indicates the individual's education level, and Exper the level of work experience. A plot of the squared residuals against the fitted values of AHE is shown in the following figure. To test whether the conditional variance of the error term has significant changes across individuals,
Consider the following estimated regression with a sample of size n=50. AHE = -2.44 – 1.57 » DFemale + 0.27 - DMarried + 0.59 • Educ + 0.04 • Exper, where AHE indicates average hourly earning of the individual, DFemale is a dummy variable indicating gender, DMarried is a dummy variable indicating marital status, Educ indicates the individual's education level, and Exper the level of work experience. A plot of the squared residuals against the fitted values of AHE is shown in the following figure. To test whether the conditional variance of the error term has significant changes across individuals,
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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