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For the models considered in Table 7-1, find out if these models suffer from the problem of heteroscedasticity. The raw data are given in Table 9-6, found on the textbook s Web site. State the tests you use. How would you remedy the problem? Show the necessary calculations. Also, present the results based on White s heteroscedasticity-corrected standard errors. What general conclusion do you draw from this exercise?
For Information: Refer to the life expectancy example (Example 7.4) |
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