You run the regression y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i Во 1 1i + ε i • variance of ε turns out to be i The proportional to 4x . Write down a 1i transformed, homoskedastic equation.
You run the regression y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i Во 1 1i + ε i • variance of ε turns out to be i The proportional to 4x . Write down a 1i transformed, homoskedastic equation.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![You run the regression
y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i
Во
1 1i
+ ε
i
•
variance of ε turns out to be
i
The
proportional to 4x
. Write down a
1i
transformed, homoskedastic
equation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F03256047-c4d6-4acb-b3bb-18185f2c131a%2F0174416b-6414-453f-8168-bf3c701939ec%2Flm3sj8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You run the regression
y₁ = B₁ + B₁ x ₁₁ + B³ 2 x2i
Во
1 1i
+ ε
i
•
variance of ε turns out to be
i
The
proportional to 4x
. Write down a
1i
transformed, homoskedastic
equation.
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