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Unformatted text preview: space below. The variability (variance) of residuals is the same for any
values of the predictor variables. (b) In Lecture 3 we observed from the timeseries plot for Australian electricity production
that the homoscedasticity assumption for these data appears to be violated.
We applied a particular solution to solve this problem, a solution which the textbook
also recommends. Brieﬂy describe our solution in the space below. We transformed the original electricity data by taking the square root. 4. Consider an F test used in multiple...
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This note was uploaded on 10/26/2013 for the course ECON 3355 taught by Professor Whitten during the Fall '12 term at University of Iowa.
 Fall '12
 Whitten

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