Consider the following regression model, y;=B1 +B2X12+ E[e;|x¡]=0 and Var(e,|x) depends on the value of ... + BxX ik+ ej i.e., Var(e;\x}) # # 02. where Xp Choose the correct statement. d. To get around the problem, we often assume that e, is normally distributed. O D. To fix the problem, we need to have an instrumental variable. O C. This problem implies that errors are correlated with one of (xi2. ..., Xk). d. If we assume Varle.lx.) =0², the confidence interval is not valid. %3D e. None of the above is correct.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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Consider the following regression model,
Y;=B1+B2X12+ +BxX ik+ ej
where E[ e,|x;]=0 and Var(e,|x,) depends on the value of
...
i.e., Var(e,|x)= o².
Choose the correct statement.
a. To get around the problem, we often assume that e; is normally distributed.
O D. To fix the problem, we need to have an instrumental variable.
O C. This problem implies that errors are correlated with one of (x2. ..., x ik):
d.
If we assume Var(e;|x) = o2, the confidence interval is not valid.
e. None of the above is correct.
Transcribed Image Text:Consider the following regression model, Y;=B1+B2X12+ +BxX ik+ ej where E[ e,|x;]=0 and Var(e,|x,) depends on the value of ... i.e., Var(e,|x)= o². Choose the correct statement. a. To get around the problem, we often assume that e; is normally distributed. O D. To fix the problem, we need to have an instrumental variable. O C. This problem implies that errors are correlated with one of (x2. ..., x ik): d. If we assume Var(e;|x) = o2, the confidence interval is not valid. e. None of the above is correct.
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