Question: In the linear regression model y = a + x, + u, the errors, are presumed to have a variance depending on a variable z.

In the linear regression model y = a + x, + u, the errors, are presumed to have a variance depending on a variable z. Explain how you will choose among the following four specifications. var() = var(u,) = z, var(u) = o'z var(u,) = o'z

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