The following plot shows the relationship between the fitted values of the regression and the residuals. e What issue does the regression have? Homoscedasticity Endogeneity Heteroscedasticity MulticollinearityAn actuarial analyst performed a linear regression and obtained the following result: Standard Variable Coefficient Error t-Statistic INTERCEPT 7.64 1.16 6.62 ASSUME -0.008 0.013 -0.61 CAP 0.015 0.233 0.06 SIZELOG -0.787 0.117 -6.75 INDCOST 1.90 0.503 3.79 CENTRAL -0.080 0.087 -0.92 SOPH 0.002 0.021 0.12 Which explanatory variables are the most and least statistically significant? SIZELOG, ASSUME O SIZELOG, CAP O SIZELOG, SOPH INDCOST, CAPYou decide to run the following regression: log(Sales,) = Bo + B1 log(GDP;) + Et. The results of your regression are bo = -5.5 and bj = 3.2. What is the correct interpretation for b1: An increase in 1% of GDP increases your sales by 32% An increase in 1% of GDP increases your sales by 3.2% An increase in 10 billion dollars in GDP increases your sales by 3.2. million. An increase in 10 billion dollars in GDP increases your sales by 3.2%The following is NOT a basic assumption of the basic linear regression model. () are normally distributed random variables (x1,.,*n) are exogenous variables Of) are independent random variables E& = 0 and Vars, = 02For the linear regression model y; = B, + [1x; + &; with 30 observations, you are given: (i) rey=05 (i) sy =7 (i) s, =5 Where 7, is the sample correlation coefficient. Calculate the estimated value of b;. (o5 ()06 ()04 ()07 You are trying to fit a linear regression model y; = B, + B;x; + &; to 18 observations. You are given the following: (i) i xi=216 (i) X% x%=3092 (iii) X5, yi =252 (iv) X%, y7 =4528 (v) X8 xiyi=3364 Determine the least squares estimate of ;. () 0.82 075 ()0.63 ()0.68