Question: C8.7 Use the data in LOANAPP.RAW for this exerc (i) Estimate the equation in part (iii) of Computer Exercise C7.8, comput- ing the heteroskedasticity-robust standard
C8.7 Use the data in LOANAPP.RAW for this exerc (i) Estimate the equation in part (iii) of Computer Exercise C7.8, comput- ing the heteroskedasticity-robust standard errors. Compare the 95% con- fidence interval on white with the nonrobust confidence interval. (ii) Obtain the fitted values from the regression in part (i). Are any of them less than zero? Are any of them greater than one? What does this mean about applying weighted least squares?
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