Question: 3. Consider the following regression model y; = P. + And + Ads, + W, Suppose that a researcher is interested in conducting White's heteroscedasticity

3. Consider the following regression model y; = P. + And + Ads, + W, Suppose that a researcher is interested in conducting White's heteroscedasticity test using the residuals from the above estimation. Write the relevant auxiliary function for the White test Employ the following problem to answer questions 4 and 5. -From the annual data for the US manufacturing sector for 24 years, Lim obtained following regression results: log Y= - 0.02 - 0.12 log K + 0.80 log 1 + 0.05: P-value = (0.000) (0.184) (0.0009) (0.0002) (1) R= = 0.99 F = 200 where I = index of real output, _ = index of real capital input, _ = index of real labor input, I = time or trend. 4. In regression (1), what is the a priori sign of log K? Do the results conform to this expectation? Why or why not

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