Question: The model from Ex. 9.18, without inclusion of X4 and X5, when tested for het- eroscedasticity following the White test outlined in regression (9.14), yielded

The model from Ex. 9.18, without inclusion of X4 and X5, when tested for het- eroscedasticity following the White test outlined in regression (9.14), yielded the following regression results. To save space, we have given only the t statistics and their p values. The results were obtained from the EViews statistical package.

a. How do you interpret the preceding regression?
b. Do these results suggest that the model above suffers from the problem of heteroscedasticity? How do you know?
c. If the above regression suffers from heteroscedasticity, how would you get rid of it?

=-15.76 + 0.381OX2i-45641Xy + 0.000005X + 0.1328X,0.0050X2(Xy (-0.01) (0.60) (098910.556) (0.13) (0.87) (0.895) (0.394) (056) (-0.85) (0.581) (0400) p value R2 = 0.23

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