• Discussion: Heteroscedasticity



      • Discuss the types of situations where you would expect to see non-constant variance in the data. Provide examples to support your response.


    • Describe a specific instance where heteroscedasticity would be a problem and the remedial measures that could be taken.
    • Homework: Chapter 9


      • Question: 9.1
      • Problems 9.8, 9.10, 9.14, and 9.19

    Write a 4-5 page paper in which you:

    1. Perform a regression restating the regression from Assignment 2 into one or more of the functional forms discussed in Chapter 5 and interpret the meaning of the coefficient in your new model.


  1. Identify a qualitative attribute or category that could affect your dependent variable, and discuss the dummy variables that you would create to estimate these categorical differences.


  1. Discuss any potential specification errors that may exist within your model.


  1. Perform tests to identify potential specification errors and discuss remedial actions based on your testing results.


Your assignment must:


      • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.


      • Include a cover page containing the tile of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.


The specific course learning outcomes associated with this assignment are:


      • Select and apply the appropriate model to analyze economic data.


      • Use technology and information resources to research issues in econometrics.


    • Write clearly and concisely about econometrics using proper writing mechanics.