Question: Consider the simple linear regression model yr 2 .60 + {31:13:- + 61', t' = 1, . . . ,n, where the variance of E,-


Consider the simple linear regression model yr 2 .60 + {31:13:- + 61', t' = 1, . . . ,n, where the variance of E,- is proportional to :13? that. is, Va1'(ez-) 20256121 {a} Suppose that we use the transformations 3;" = y/zr and a" = 1/3: Is this a variance-stabilizing transformation? (b) Write the model for the transformed variables as 31:: .130 + gs\"- + 52,1" l. W hat are the relationships between the parameters in the original model and the transformed model
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