Suppose You Are Interested in Explaining Variation in Mile Run

question 6

Essay

Suppose you are interested in explaining variation in Mile Run Time in a sample of 22,359 individuals over the age of 18 and that you estimate the sample regression function (standard errors in parentheses)

$\begin{array}{lllll} \text {Mile Run Time} _ { i } =& 7.28 +& 0.09 \text {Weight} _ { i } +& 0.13 \text {Age} _ { i } -& 0.43 \text {Days Exercise per Week } _ { i }\\ \\&(2.36) &(0.04)&(0.06)&( 0.13 )\\\end{array}$

a)Which variable do you suspect could be responsible for heteroskedasticity in this model? Why? Explain.
b)How would you use the modified White's test to determine whether heteroskedasticity is present? Explain.
c)What would be your most preferred method for correcting for the potential heteroskedasticity? Explain.

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Definitions:

Labor Force

The labor force consists of all the working-age population who are willing and able to work, including both employed and unemployed individuals.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products that sustain human life.

Industrial Market Country

A term not widely used but likely referring to countries with economies driven primarily by the industrial sector, including manufacturing and services.

Birth Rate

A statistical measure showing the number of live births per 1,000 people in a given year, providing insight into population growth trends.