Question: Read the R outputs below using cigarette data set and answer questions, where LNC is log consumption; LNP is log price, LNY is log income.

 Read the R outputs below using cigarette data set and answer

Read the R outputs below using cigarette data set and answer questions, where LNC is log consumption; LNP is log price, LNY is log income. (a) From the Breusch-Pagan test output below, discuss whether the error term in regression model ola is homoskedastic or heteroskedastic. Clearly write down the null/alternative hypothesis and your conclusion. > bptest(ols) studentized Breusch-Pagan test data: ols BP=6.5936, df =2, -value =0.037 (b) If we rejects the null hypothesis of a Breusch-Pagan test, i.e., Assumption 2 turns out to be violated, is the OLS estimator in ols unbiased? consistent? efficient? (c) Suppose we find heteroskedasticity in the regression model, what shall we do to correct it? Clearly write down the steps in details (such as what transformation is needed; what parameters need be estimated)

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