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Carefully Outline (Be Brief!) a Description of the Problem Typically

Question 4

Essay

Carefully outline (be brief!) a description of the problem typically referred to as pure heteroskedasticity.
(a) What is it?
(b) What are its consequences?
(c) How do you diagnose it?
(d) What do you do to get rid of it?

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(a) Pure heteroskedasticity refers to a ...

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