Suppose you are interested in explaining variation in Body Mass Index in a nationally-representative sample of 12,486 men and women and that you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { l }
B M I _ { i } = &26.37 -& 5.61 \text { Female } _ { i } +& 0.48 \mathrm { Age } _ { i } \
& (4.62) &(1.05) &(0.13) \
\end{array}$$
a)Which variable do you suspect could be responsible for heteroskedasticity in this model? Why? Explain.
b)How would you use the Breusch-Pagan test to determine whether heteroskedasticity is present? Explain.
c)How would you use Weighted Least Squares to account for heteroskedasticity if it is present? Explain.

Question

Suppose you are interested in explaining variation in Body Mass Index in a nationally-representative sample of 12,486 men and women and that you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { l } 
B M I _ { i } = &26.37 -& 5.61 \text { Female } _ { i } +& 0.48 \mathrm { Age } _ { i } \
& (4.62) &(1.05) &(0.13)  \
\end{array}$$ 
a)Which variable do you suspect could be responsible for heteroskedasticity in this model? Why? Explain.
b)How would you use the Breusch-Pagan test to determine whether heteroskedasticity is present? Explain.
c)How would you use Weighted Least Squares to account for heteroskedasticity if it is present? Explain.

Quizplus · Accepted Answer

The Answer of Suppose you are interested in explaining variation in Body Mass Index in a nationally-representative sample of 12,486 men and women and that you estimate the sample regression function (standard errors in parentheses) $$\begin{array} { l } 
B M I _ { i } = &26.37 -& 5.61 \text { Female } _ { i } +& 0.48 \mathrm { Age } _ { i } \
& (4.62) &(1.05) &(0.13)  \
\end{array}$$ 
a)Which variable do you suspect could be responsible for heteroskedasticity in this model? Why? Explain.
b)How would you use the Breusch-Pagan test to determine whether heteroskedasticity is present? Explain.
c)How would you use Weighted Least Squares to account for heteroskedasticity if it is present? Explain.

Suppose You Are Interested in Explaining Variation in Body Mass