Question: 10 Use the following variance specification to transform the model relating food expenditure to weekly income. The model FOOD = B1 + B2INCOME + 4

10 Use the following variance specification to transform the model relating food expenditure to weekly income. The model FOOD = B1 + B2INCOME + 4 Variance specification: 012 =02 INCOME: Find the estimatedcoefficientsof the transformedmodel Fill in the blanks below. b_j b1* b2 Regress the squaredresidualsfrom the transformedmodelon INCOME and testfor heteroscedasticity. Compute the test statistic to test the null hypothesis that heteroskedasticity is eliminated. a 5.685 Heteroskedasticity is not eliminated b 6.317 Heteroskedasticity is not eliminated C 7.019Heteroskedasticitys eliminated 7.799 Heteroskedasticitys eliminated

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