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Suppose we estimate the following regression: yt = 1 + 2x2t + 3x3t + ut. Suppose the variance of ut is related to a known

Suppose we estimate the following regression: yt = 1 + 2x2t + 3x3t + ut. Suppose the variance of ut is related to a known variable zt as follows: Var(ut) = ^2(zt). How would you transform the data so that the errors are homoskedastic?

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