QUESTION 1Consider the following regression model,Y;=B1+B2X12+ + BxXik+ ejwhere E[e;|x;]=0 and Var(e,x,) depends on the value ofXji.e., Var(e,|x) = o².Choose the correct statement.d. To get around the problem, we often assume thatejis normally distributed.O D. To fix the problem, we need to have an instrumental variable.(X12°O C. This problem implies that errors are correlated with one ofOd.If we assume Var(e,lx) = o2, the confidence interval is not valid.е.None of the above is correct.

When the explanatory variables are correlated /dependent upon the errors or error are dependent upon…

Consider the following regression model, Y;=B1+B2X12+ +BxXiK+ ej where E[ e;|x;]=0 and Varle,|x) depends on the value of X, 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 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. O d. If we assume Varle.lx.) = o², the confidence interval is not valid. O e. None of the above is correct.

Consider the following regression model, Y;=B1+B2X12+ +BxXiK+ ej where E[ e;|x;]=0 and Varle,|x) depends on the value of X, 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 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. O d. If we assume Varle.lx.) = o², the confidence interval is not valid. O e. None of the above is correct.

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter1: Equations And Graphs

Section1.FOM: Focus On Modeling: Fitting Lines To Data

Problem 4P

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