Assume That Var(u_i|X_i)= ?₀+?₁ $x _ { i } ^ { 2 }$

question 9

Multiple Choice

Assume that var(u_i|X_i) = ?₀+?₁ $x _ { i } ^ { 2 }$ One way to estimate ?₀ and ?₁ consistently is to regress

• A) \(\hat {\mathrm { u }}\) _i on \(x _ { i } ^ { 2 }\) using OLS
• B) \(\hat { u } _ { i } ^ { 2 }\) on \(x _ { i } ^ { 2 }\) using OLS
• C) \(\hat { u } _ { i } ^ { 2 }\) on \(\sqrt { x }\) _iusing OLS
• D) \(\hat { u } _ { i } ^ { 2 }\) on \(x _ { i } ^ { 2 }\) using OLS but suppressing the constant ("restricted least squares")

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Definitions:

Probability

A measure of the likelihood of a particular event or outcome in a set of possible events, typically expressed as a ratio between 0 and 1.

Air Quality Standards

Regulations set by governments to control the levels of pollutants in the air, ensuring it is safe to breathe and protective of public health and the environment.

Air Pollution

The presence of harmful substances in the air, often resulting from human activities, that can harm health and the environment.

Waste Management

The process of handling solid wastes, including collection, transportation, processing, recycling, and disposal.