Suppose You Wish to Explain Variation in Body Mass Index $B M I _ { i } = \beta _ { 0 } + \beta _ { 1 } \text { Height } _ { i }$

question 14

Multiple Choice

Suppose you wish to explain variation in body mass index (BMI) by variation in height (in inches) by estimating the model $B M I _ { i } = \beta _ { 0 } + \beta _ { 1 } \text { Height } _ { i }$
And you suspect heteroskedasticity of the form $\operatorname { Var } ( \varepsilon ) = \sigma ^ { 2 } \text { Height } _ { i } ^ { 4 }$
) You could perform Weighted Least Squares by estimating the model

• A) \(B M I _ { i } = \beta _ { 0 } + \beta _ { 1 } \text { Height } _ { i }\) .
• B) \(\text { BMI } _ { i } / \text { Height } _ { i } = \beta _ { 0 } \left( 1 / \text { Height } _ { i } \right) + \beta _ { 1 }\) .
• C) \(B M I _ { i } / \text { Height } _ { i } ^ { 2 } = \beta _ { 0 } \left( 1 / \text { Height } _ { i } ^ { 2 } \right) + \beta _ { 1 } \left( 1 / \text { Height } _ { i } \right)\) .
• D) \(1 = \beta _ { 0 } \left( 1 / B M I _ { i } \right) + \beta _ { 1 } \text { Height } _ { i } / B M I _ { i }\) .

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Definitions:

Empirical Measure

A quantitative determination obtained through observation and experimentation rather than theory.

Variable

A measure that can change from time to time or from observation to observation.

Causality

Describes a relationship where one event (the cause) directly affects the outcome of another event (the effect).

Normative Question

Involves value judgments about what ought to be and discusses what should be done based on subjective criteria.