Question: QUESTION THREE (a) State in algebraic notation and explain the CLRM assumption of homoskedasticity. (b) What would be the consequence of estimating a model by

QUESTION THREE (a) State in algebraic notation and explain the CLRM assumption of homoskedasticity. (b) What would be the consequence of estimating a model by OLS if the errors are not homoskedastic? (c) How might you proceed if you found that the error term in a regression model was not homoskedastic?

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