QUESTION 1 Consider the following regression model, Yi=B1+B2X12++ BxXik+ ej E[e,x,]=0 and Varle,x) depends on the value of Xp i.e., Var(e,x) = o2. where 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 O d. If we assume Varlelx)= o?, the confidence interval is not valid. e. None of the above is correct.

MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
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Chapter1: Starting With Matlab
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Plzz choose correct option and explain.
QUESTION 1
Consider the following regression model,
Y=B1+B2X12 + +BxX iK+ ej
where Ele,x,]=0 and Var(e, x) depends on the value of Xp 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 b.T
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):
O d. if we assume Varle,lx.) = o2, the confidence interval is not valid.
е.
None of the above is correct.
Transcribed Image Text:QUESTION 1 Consider the following regression model, Y=B1+B2X12 + +BxX iK+ ej where Ele,x,]=0 and Var(e, x) depends on the value of Xp 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 b.T 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): O d. if we assume Varle,lx.) = o2, the confidence interval is not valid. е. None of the above is correct.
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