1. Write the steps for testing heteroscedasticity with "white test" for the regression below,
(20 pts)
In(wage)$_{i}$ = $\alpha$ + $\alpha_{1}$education$_{i}$ + $\alpha_{2}$experience$_{i}$ + u$_{i}$
2. Apply Glejser test for heteroscedasticity with given information. (40 pts)
Y = 0.3373 + 7.356X$_{i}$
se: (0.03) (2.25)
Number of obs: 32
R$^{2}$: 0.73
$\sum{d^{2}}$ = 4792
$|u_{i}|$ = 2.073 + 5.43$\sqrt{X_{i}}$
t: (0.99) (1.05)
ln($\hat{u}^{2}$) = 3.6952 + 0.3774 ln X$_{i}$
se: (1.0046) (0.0341)
3. Test Autocorrelation for the model given below. (40 pts)
$\hat{Y}_{i}$ = 7.3373 + 57.5174X$_{i}$
se: (1.83) (3.25)
R$^{2}$: 0.73
Number of obs: 32
$\sum{d^{2}}$ = 4792 DW = 1.98
Observations X variables, excluding the intercept
N Prob. D-L 1 D-U 2 D-L D-U 3 D-L D-U 4 D-L D-U 5 D-L D-U
15 0.05 1.08 1.36 0.95 1.54 0.82 1.75 0.69 1.97 0.56 2.21
0.01 0.81 1.07 0.7 1.25 0.59 1.46 0.49 1.70 0.39 1.96
20 0.05 1.20 1.71 1.10 1.54 1.00 1.68 0.90 1.83 0.79 1.99
0.01 0.95 1.15 0.86 1.27 0.77 1.41 0.68 1.57 0.60 1.74
25 0.05 1.29 1.45 1.21 1.55 1.12 1.66 1.04 1.77 0.95 1.89
0.01 1.05 1.21 0.96 1.30 0.90 1.41 0.83 1.52 0.75 1.65
30 0.05 1.35 1.49 1.28 1.57 1.21 1.65 1.14 1.74 1.07 1.83
0.01 1.13 1.26 1.07 1.34 1.01 1.42 0.94 1.51 0.88 1.61
40 0.05 1.44 1.54 1.39 1.60 1.34 1.66 1.39 1.72 1.23 1.79
0.01 1.25 1.34 1.20 1.40 1.15 1.46 1.10 1.52 1.05 1.58
50 0.05 1.50 1.59 1.46 1.63 1.42 1.67 1.38 1.72 1.34 1.77
0.01 1.32 1.40 1.28 1.45 1.24 1.49 1.20 1.54 1.16 1.59
60 0.05 1.55 1.62 1.51 1.65 1.48 1.69 1.44 1.73 1.41 1.77
0.01 1.38 1.45 1.35 1.48 1.32 1.52 1.28 1.56 1.25 1.60
$t_{0.05,28}$ = 2.048 $t_{0.05,30}$ = 2.042 $F_{0.05,1,28}$ = 4.20
