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(a) Using LAD, estimate the parameters in the following model:
EXPENDi = M1 + M2AGEi + M3OWNRENTi + M4INCOMEi + M5INCOMEi2 + Vi:
(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.
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The presence of autocorrelation leads to all of the following undesirable consequences in the regression results except:
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