Introduction, Reasons and Consequences of Heteroscedasticity
Heteroscedasticity An important assumption of OLS is that the disturbances μi appearing in the population regression function are homoscedastic (Error term have same variance). i.e. The variance of...
View ArticleBreusch-Pagan Test for Heteroscedasticity
Breusch–Pagan test (named after Trevor Breusch and Adrian Pagan) is used to test for heteroscedasticity in a linear regression model. Assume our regression model is $Y_i = \beta_1 + \beta_2 X_{2i} +...
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