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14. A researcher suspects that the error terms in the total cost function (1) C-Bo + Bi Q + BQ +Bi Q + u may

  • 14. A researcher suspects that the error terms in the total cost function (1) C-Bo + Bi Q + B₂Q² +Bi Q¹ + u may be heteroskedastic. He, therefore, runs the following regression (t-ratios in parentheses): 2612.9 258.16 Q + 6.2565 Q² R²-0.4195 n 10 (.9893) (-1.304) (1.532) where û is calculated from the least-squares regression of (1). Should he reject the null hypothesis of homoskedasticity?

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