Linear probability models are prone to heteroskedasticity. Use the data in BINGE.XLS and statistical software to run a regression where BINGE is explained by a constant term, cig, class, intra, male, pot, and white.

Variable Description binge 1 If the student binged in the last two weeks; 0 otherwise cig 1 If the student uses tobacco; 0 otherwise class 1 If first year; 2 if soph; 3 if jr; 4 if senior intra 1 If the student participates in intramural athletics; 0 otherwise male 1 If the student is male; 0 otherwise pot 1 If the student uses marijuana; 0 otherwise white 1 If the student is white; 0 otherwise (A) Which variables do not attain their expected signs?
(B) Which variables are not significant at the 5% critical level?
(C) Perform White’s test for heteroskedasticity. Show the five-step procedure.
(D) Apply the Newey-West technique to obtain heteroskedasticitycorrected standard errors with the original regression. Did heteroskedasticity appear to be biasing the standard errors of the structural parameters very much? Explain.