Assignment 4: Diagnostics and Alternative Methods of Regression' author: "Nguyen Thi Dieu Hoang^[Graduate Student, Kobe University]" date: '`r format(Sys.time(), "%d %m, %Y")`' output: pdf_document --- # Question 1 Consider the following model to explain monthly beer consumption (beer): $$ \frac{beer}{inc} = \beta_{0} + \beta_{1}inc + \beta_{2}price + \beta_{3}educ + \beta_{4}female + u' $$ $$ \mathrm{E}(u|inc, price, educ, female) = 0 $$ $$ Var(u|inc, price, educ, female) = \sigma^{2}inc^{2} $$
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