Assume That the Variance Depends on a Third Variable,Wi,which Does

question 43

Multiple Choice

Assume that the variance depends on a third variable,Wi,which does not appear in the regression function,and that var(ui|Xi,Wi) = θ0+θ1 .One way to estimate θ0 and θ1consistently is to regress

• A) i on using OLS
• B) i on using OLS
• C) on using OLS
• D) on using OLS

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