ZuoTi.Pro
Question

6. Consider a linear model to explain monthly beer consumption: beer-A, + ßlinc + β2price + β3edu + β4female +11 E(u \ inc, price.educ, female)二0 Var(u \ inc, price , educ, female)-02 inc. Write the transformed equation that has a homosckedastic error term.

Please show the work thanks

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

beer n c inc , 4 -O inc

0 0
Add a comment
Know the answer?
Add Answer to:
Please show the work thanks 6. Consider a linear model to explain monthly beer consumption: beer-A,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 2. (W 8.2] Consider a linear model to explain monthly beer consumption: beer = Bo +...

    2. (W 8.2] Consider a linear model to explain monthly beer consumption: beer = Bo + B, inc + B2price + Bzeduc + Bufemale + u where E(ulinc, price, educ, female) = 0 and Var(ulinc, price, educ, female) = o inca, that is, the variance is proportional to the square of the variable inc. Write the transformed equation that has a homoskedastic error term.

  • Consider the linear model to explain monthly beer consumption: beer = Bo + B, inc +...

    Consider the linear model to explain monthly beer consumption: beer = Bo + B, inc + B2 price + B3 educ + 34 female + u where E(ulinc, price, educ, female) = 0 and Var(uinc, price, educ, female) = o-inc. Answer the following questions. 1. What is heteroskedasticity? Explain. 2. Write the transformed model that has an homoskedastic error term. 3. Outline the intuition behind the BP and White tests for heteroskedasticity. 4. If we have dummy variables in our...

  • 3. Consider the following model to explain monthly beer consumption: where E(ujincome, price, educ, female) -0...

    3. Consider the following model to explain monthly beer consumption: where E(ujincome, price, educ, female) -0 and Var(ulincome, price, educ, female) - ?"income. (a) What problems arise if OLS is used to estimate the model? (b) Write the transformed equation that has a homoskedastic error term.(4 Marks) (4 Marks)

  • QUESTION 8 Consider a linear model to explain monthly beer consumption: beer = Bo + Biinc...

    QUESTION 8 Consider a linear model to explain monthly beer consumption: beer = Bo + Biinc + B2price + B3educ + B4female + u, E(ulinc, price, educ, female) = 0 and Var(ulinc, price, educ, female) = o inc. Which of the following transformed equation has a homoscedastic error term? a. beer = Bo + B1inc + B2price + B3educ + B4female + u b.beer/inc= Bo(1/inc) + B1(1/inc) + B2(price/inc-) + B3(educ/inc?) + B4(female/inc?) + (u/inc) OC beer/inc = Bo(1/inc) +...

  • First question:Second question: The model: Y4 = Bo + B2C+ + ut, t = 1,2,.....n, is...

    First question:Second question: The model: Y4 = Bo + B2C+ + ut, t = 1,2,.....n, is an example of a(n): a) Autoregressive conditional heteroscedasticity model. b) static model. c) finite distributed lag model. d) infinite distributed lag model. Consider a linear model to explain monthly beer consumption: | Beer=Bo +Biinc +B2 price +B3educ +B4 female +u E(ulinc,price,educ, female) =0 Var(uſinc,price,educ, female) = o zinc?. Write the transformed equation that has a homoskedastic error term.

  • Please provide clear work. Thanks! Consider the following IS-LM model in a closed economy: C =...

    Please provide clear work. Thanks! Consider the following IS-LM model in a closed economy: C = 335 + 0.3YD L = 130 + 0.15Y – 850i G = 350 T = 245 i= 0.04 M/P = 3.6Y – 9, 250i Part a. (5 points) Please explain all the variables in the model, what does each letter represent? Part b. (5 points) What is the IS equation in this model? (You need to find an equation of Y which is a...

  • please show work [c; 4pt] Consider the AE model with consumption, investment, and government spending. Per...

    please show work [c; 4pt] Consider the AE model with consumption, investment, and government spending. Per capita consumption is represented by the function C = 4000 + 0.75(Y-T) and investment is $3000 per capita. How much does the AE model predict GDP will increase with 52,000 per capita of balanced-budget government spending? $1,000 per capita of government deficit spending? Id; 5pt] Banking and T-accounts Suppose a bank starts with $10,000 cash raised from co-owners (so equity also starts at $10,000)....

  • Consider the following linear regression model 1. For any X x, let Y xBU, where 3...

    Consider the following linear regression model 1. For any X x, let Y xBU, where 3 E R*. 2. X is exogenous 3. The probability model is {f(u;0) is a distribution on R: Ef [U] = 0, VAR, [U] = 02,0 > 0}. 4. Sampling model: Y} anidependent sample, sequentially generated using Yi x Ui,where the U IID(0,0) are (i) Let K 0 be a given number. We wish to estimate B using least-squares subject to the constraint 6BK2. Write...

  • Please explain and show work, Thanks! A 2300-lb truck sits on a ramp inclined at 13°....

    Please explain and show work, Thanks! A 2300-lb truck sits on a ramp inclined at 13°. Find the (approx.) magnitude of the force required to keep the truck from rolling down the ramp. 13° 2300 lb lbs Show your work for full credit 1. Draw and label the figure with the unknowns force vector 2. Write out any applicable formulas or equation to set up an equation with the unknown force magnitude 3. Solve the equation to find the magnitude...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT