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:

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