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4 QUESTION 2 MARKS:5+5-10 Hotel Capitol Hill has appointed you as a consultant to model beer consumption at the bar of the hotel. For this
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QUESTION 2 MARKS:5+5-10 Hotel Capitol Hill has appointed you as a consultant to model beer consumption at the bar of the hotel. For this purpose, you developed the following linear model. which suffers from the heteroskedastic problem: beer = B1 + Bzinc + B3price + BAeduc + Bsfemale + & E(Elinc, price, educ, female) = 0 var (elinc, price, educ, female) = o2inc2 2a Write the transformed equation that has a homoskedastic error term. 2b Demonstrate that the error term is homoskedastic. Word limit: 25+25=50Step by Step Solution
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