In the two variable population regression function (PRF), suppose the error variance has the following structure E(u2i) 2X4i How would you transform the model to achieve homoscedastic error variance How would you estimate the transformed model List the various steps ...

Let Y i B 1 B 2 X i u i Now divide this equatio ...

In the two-variable population regression function (PRF), suppose the error variance has the following structure: E(u2i) =

Question:

In the two-variable population regression function (PRF), suppose the error variance has the following structure:
E(u2i) = σ2X4i
How would you transform the model to achieve homoscedastic error variance? How would you estimate the transformed model? List the various steps.