Economics This is a monte carlo question and need to be solved argebraically or via EViews or both ways. Heteroskedasticity: Suppose our true model is yi = βo+β1*x1i+ β2*x2i+ e(exp(x2i))^0.5 , i = 1, 2, …, N, ei ~i.i.d.N(0, σ^2). where i = 1,2, …,N. Compare the estimators and test statistics when you take heteroskedasticity into account to those you obtain when you ignore heteroskedasticity. Your investigation should include consideration of different sample sizes. An outstanding report should try to address the following issues with both algebraic proof and esperiment results. How many estimators for B1 and B2 can you think of? Do they give unbiased and consistent estimates? Why? . After considering a few estimators in this topic, what suggestions will you give to a practitioner as to which one should be used in practice?
