Question: 6. Continuing with the example in Exercise 8.5, Table 8.3 contains output for the following leasts quaresr egression ?7 : o, + azROOMSi * qROOM$
6. Continuing with the example in Exercise 8.5, Table 8.3 contains output for the following leasts quaresr egression
?7 : o, + azROOMSi * qROOM$ + (\ CRIMEi + asCntUn? + q6DISTi + vi where 2; are the least squares residuals from the mean function estimated in Exercise 8.5.
(a) Discuss how each of the variables ROOMS, CRIME, and DISZ influences the variance of house values.
(b) Test for heteroskedasticity.
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