Problem
1. Write out and explain the formula for the standard error of an estimator in a regression with two independent variables where both variables are correlated. Explain the intuition behind a situation in which an independent variable shows little (or no) variation and why estimation by OLS produces unreliable estimates. What are the implications for t-tests?
2. Explain the intuition behind a robust standard error (also known as White- heteroskedastic consistent standard errors). [NO, I did not invent these, but I should have!]
1. What are the implications for t-tests on individual parameter estimates in a regression?
2. What are the implications for F-tests?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.