Consider the following multiple regression model Y = XB + E, wh... | Filo

Use the data set 401 KSUBS for this exercise. (i) Using OLS, estimate a linear probability model for e 401 k, using as explanatory variables inc, inc ^2, age, a g e^2, and male. Obtain both the usual OLS standard errors and the heteroskedasticity- robust versions. Are there any important differences? (ii) In the special case of the White test for heteroskedasticity, where we regress the squared OLS residuals on a quadratic in the OLS fitted values, ûi^2 on ŷi, ŷi^2, i=1, …, n, argue that the pro

OLS Regression with Continuous Random Variables