Question: Problem 1. Consider the following modified Tobit model: y* = exp (xiB + Ei), where &; is iid N (0, o2) and independent of {xi},_.

Problem 1. Consider the following modified Tobit model: y* = exp (xiB + Ei), where &; is iid N (0, o2) and independent of {xi},_. We observe yi : yi , if y; Z Y* yi = if yi

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