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a. The following model has been estimated with cross-sectional data to yield the indicated results: Y=376+1342X,+0.891 X3+u; R2=0.775 F=11.26 n=40 t stats 4.7) (6.8) Assuming

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a. The following model has been estimated with cross-sectional data to yield the indicated results: Y=376+1342X,+0.891 X3+u; R2=0.775 F=11.26 n=40 t stats 4.7) (6.8) Assuming that heteroscedasticity of the form ;2 = 62 X is suspected, the sample is sorted in increasing order of X;. The middle 8 observations from this sorted data are removed and the observations divided to yield two subsamples -- one with high values of X; and one with low values of X;. The Residual Sum of Squares (RSS) for the high subsample has been computed as 57.27, whereas that for the low subsample is determined to be 4.29. Using the Goldfeld-Quandt procedure, test for the presence of the indicated form of heteroscedasticity by calculating the appropriate statistic and giving your conclusion. Use a=.05 Suppose White's test was run on this model with the resulting R2 = 0.517. What would be your test statistic value, the result of the test, and your conclusion? Use the chi-square table and a = .05 to determine your critical value

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