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    Introductory Econometrics Study Set 1
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    Exam 8: Heteroskedasticity
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    Consider the Following Regression Model: Y<sub>i</sub> = <Sub>0</sub>
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Consider the Following Regression Model: Yi = 0

Question 25

Question 25

Multiple Choice

Consider the following regression model: yi = Consider the following regression model: y<sub>i</sub> =   <sub>0</sub> +   <sub>1</sub>x<sub>i</sub> + u<sub>i</sub>. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____. A) Var(u<sub>i</sub>|x<sub>i</sub>)  = 0 B) Var(u<sub>i</sub>|x<sub>i</sub>)  = 1 C) Var(u<sub>i</sub>|x<sub>i</sub>)  =   i<sup>2</sup> D) Var(u<sub>i</sub>|x<sub>i</sub>)  =  0 + Consider the following regression model: y<sub>i</sub> =   <sub>0</sub> +   <sub>1</sub>x<sub>i</sub> + u<sub>i</sub>. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____. A) Var(u<sub>i</sub>|x<sub>i</sub>)  = 0 B) Var(u<sub>i</sub>|x<sub>i</sub>)  = 1 C) Var(u<sub>i</sub>|x<sub>i</sub>)  =   i<sup>2</sup> D) Var(u<sub>i</sub>|x<sub>i</sub>)  =  1xi + ui. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____.


A) Var(ui|xi) = 0
B) Var(ui|xi) = 1
C) Var(ui|xi) = Consider the following regression model: y<sub>i</sub> =   <sub>0</sub> +   <sub>1</sub>x<sub>i</sub> + u<sub>i</sub>. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____. A) Var(u<sub>i</sub>|x<sub>i</sub>)  = 0 B) Var(u<sub>i</sub>|x<sub>i</sub>)  = 1 C) Var(u<sub>i</sub>|x<sub>i</sub>)  =   i<sup>2</sup> D) Var(u<sub>i</sub>|x<sub>i</sub>)  =  i2
D) Var(ui|xi) = Consider the following regression model: y<sub>i</sub> =   <sub>0</sub> +   <sub>1</sub>x<sub>i</sub> + u<sub>i</sub>. If the first four Gauss-Markov assumptions hold true, and the error term contains heteroskedasticity, then _____. A) Var(u<sub>i</sub>|x<sub>i</sub>)  = 0 B) Var(u<sub>i</sub>|x<sub>i</sub>)  = 1 C) Var(u<sub>i</sub>|x<sub>i</sub>)  =   i<sup>2</sup> D) Var(u<sub>i</sub>|x<sub>i</sub>)  =

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