What is the variance of u conditional on income, vartul inc)? Consider the following savings model: Where inc income and sav = savings A. var(inc*e) OB. inc*var(e) OC var(sqrt(inc)) OD. var(e) sav = Bo + Brinc + u, u = Vince
What is the variance of u conditional on income, vartul inc)? Consider the following savings model: Where inc income and sav = savings A. var(inc*e) OB. inc*var(e) OC var(sqrt(inc)) OD. var(e) sav = Bo + Brinc + u, u = Vince
Chapter7: Uncertainty
Section: Chapter Questions
Problem 7.1P
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