+ B2X12+ .. + BxX iK+ ej Te,|x,]= 0 and Var(e,|x,) depends on the value of xp i.e., Var(e;|\> the correct statement. o get around the problem, we often assume that e, is normally distributed. o fix the problem, we need to have an instrumental variable. his problem implies that errors are correlated with one of (x12, .., X). we assume Var(e,lx,) = o2, the confidence interval is not valid. one of the above is correct.
+ B2X12+ .. + BxX iK+ ej Te,|x,]= 0 and Var(e,|x,) depends on the value of xp i.e., Var(e;|\> the correct statement. o get around the problem, we often assume that e, is normally distributed. o fix the problem, we need to have an instrumental variable. his problem implies that errors are correlated with one of (x12, .., X). we assume Var(e,lx,) = o2, the confidence interval is not valid. one of the above is correct.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.6: Regression And Median-fit Lines
Problem 5PPS
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Question
7
![Consider the following regression model,
Y;= B1 + B2Xi2 + .. + BxX ik+ e;
where E[ e;|x;] = 0 and Var(e, x) depends on the value of Xp i.e., Var(e;|x) = o2.
Choose the correct statement.
O a. To get around the problem, we often assume that e, is normally distributed.
O b. To fix the problem, we need to have an instrumental variable.
O C. This problem implies that errors are correlated with one of (xi2, ., x ik):
O d. If we assume Varle,lx) = o2, the confidence interval is not valid.
O e. None of the above is correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92503610-3552-4bcb-9ba0-7265476b1020%2Fca47b585-aeb7-4683-9064-7435eaade157%2Fszaubnf_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following regression model,
Y;= B1 + B2Xi2 + .. + BxX ik+ e;
where E[ e;|x;] = 0 and Var(e, x) depends on the value of Xp i.e., Var(e;|x) = o2.
Choose the correct statement.
O a. To get around the problem, we often assume that e, is normally distributed.
O b. To fix the problem, we need to have an instrumental variable.
O C. This problem implies that errors are correlated with one of (xi2, ., x ik):
O d. If we assume Varle,lx) = o2, the confidence interval is not valid.
O e. None of the above is correct.
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