a using lad estimate the parameters in the

Question

(a) Using LAD, estimate the parameters in the following model:

EXPEND_i = M₁ + M₂AGE_i + M₃OWNRENT_i + M₄INCOME_i + M₅INCOME_i² + V_i:

(b) Obtain standard errors of your estimates in part (a) using the Wild bootstrap with (B = 9; 999).

(c) Using the bootstrap (with B = 9; 999) test H0 : 2 = 0 vs. H0 : 2 = 0 at the 5% level.