Question: Consider a linear model to explain monthly beer consumption: beer = (0 + (1inc + (2 price + (3 educ + (4 female + u.
beer = (0 + (1inc + (2 price + (3 educ + (4 female + u.
E(u|inc, price, educ, female) = 0
Var(u|inc, price, educ, female) = (2 inc2.
Write the transformed equation that has a homoskedastic error term.
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