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5.6 5. Refer to the regression described in Exercise 5.5. a. Do you think that the regression errors are plausibly homoskedastic? Explain. b. SEC) was

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5.6

5. Refer to the regression described in Exercise 5.5. a. Do you think that the regression errors are plausibly homoskedastic? Explain. b. SEC) was computed using Equation (5.3). Suppose the regression errors were homoskedastic. Would this affect the validity of the confi- dence interval constructed in Exercise 5.5(c)? Explain

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