Description

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):

$$
\frac{beer}{inc} = \beta_{0} + \beta_{1}inc + \beta_{2}price + \beta_{3}educ + \beta_{4}female + u'
$$


$$
\mathrm{E}(u|inc, price, educ, female) = 0
$$


$$
Var(u|inc, price, educ, female) = \sigma^{2}inc^{2}
$$