dpi (X3), per-capita disposable income in dollars; ddpi (X4), percent growth rate of dpi. (1). Fit a linear regression model Y Bo + B1X1 + B2X2+ B3X3 + B4X4 + e. Examine the residuals. %3D (2). Find...

Answer jus 2 and 3

Extracted text: dpi (X3), per-capita disposable income in dollars; ddpi (X4), percent growth rate of dpi. (1). Fit a linear regression model Y Bo + B1X1 + B2X2+ B3X3 + B4X4 + e. Examine the residuals. %3D (2). Find the best value of A in the transformation V = (Y^ – 1)/(AỶ^-1) for A#0, and V= Ýln(Y) for ) = 0. (3). Is it necessary to transform Y? Problem 2. In the context of generalized least squares, Y = XB + €, where Var(e) = Eo?. Let D be a non-singular matrix such that E = DD'. Let Y = D-1Y,X = D-1X, e' = D-'e, e* = Y- Ý, and e = Y - Ỹ. Show that (1) De, e = (2) Var(e) = [E-X(X'E-'x)-'x']o². FUDIC 01 ** 0.05 0.1