Consider the linear probability model 11eb9b5b_3eb2_dadb_bf3e_3946c7a5c236_SM2686_11 where 11eb9b5b_3eb3_01ec_bf3e_51c6267aaa3d_SM2686_11 a. Show that 11eb9b5b_3eb3_01ed_bf3e_bfdb9d1dcda6_SM2686_11 b. Show that var 11eb9b5b_3eb3_01ee_bf3e_8fba6c8f0194_SM2686_11 . c. Is U i heteroskedastic Explain. d. (Requires Section 11.3) Derive the likelihood function.

Introduction to Econometrics 3rd Edition by James Stock, James Stock

Edition 3ISBN: 978-9352863501

Edition 3ISBN: 978-9352863501

Exercise 13

Consider the linear probability model

where

a. Show that

b. Show that var

.
c. Is U i heteroskedastic Explain.
d. (Requires Section 11.3) Derive the likelihood function.

Explanation

Verified

a.
The linear probability model has the ...