Using your preferred computer software and the data from problem 6 in Section 7.2, correct for heteroscedasticity. Assume Var (i) = 2 i = 2X2

Using your preferred computer software and the data from problem 6 in Section 7.2, correct for heteroscedasticity. Assume Var (εi) = σ2 i =

σ2X2 i, where Xi is bank balances.

Data from problem 6 in Section 7.2

The Council of the European Union7 has raised concern regarding the international trading practices of its member nations. Data have been collected for three important variables for each of the members with the intent of examining their economic behavior. Respond to the questions below on the basis of these data. These data can also be found in the Excel data file EU. Slovenia is left out of this analysis due to incomplete data.
There are n = 26 observations.

Using bank transfers as the dependent variable and bank balances as the variable suspected of creating heteroscedasticity, use the Park test to test for heteroscedasticity.