Question: Hello, I would like the answer to this question please. Suppose you are interested in modeling the amount of money a household spends for a

 Hello, I would like the answer to this question please. Suppose

Hello, I would like the answer to this question please.

you are interested in modeling the amount of money a household spends

Suppose you are interested in modeling the amount of money a household spends for a house. We would expect income to be a determining factor. In addition, the income tax rate for a household might be important since there are tax advantages to home ownership, If you were to run a regression of home purchase price on income and marginal tax rate, your results might be subject to.. a. Multicollinearity. b. Heteroscedasticity c. Specification bias O d. Autocorrelation

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