Residuals from the first regression

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Reference no: EM131431989

1. Consider a regression using 30 observations that has a constant term and 2 independentvariables G, and Y.The observations a sorted according to the variable Y from smallest to largest. The regressionis then estimated on two groups, one with the lowest values of Y and one with the highestvalues of Y. Each group has 11 observations each.The RSS for first group is 321, the RSS for second group is 28101.Perform and Goldfeld - Quandt test for heteroscedasticity at the 1 percent level.

2. Consider a regression that uses the square of the residuals from the first regression above asthe dependent variable and has a constant term, the variables G and Y and the squared of bothG and Y and the product term GY as independent variables. The R^2 is 0.9878Preform a White test for Heteroscedasticity.

3. Suppose the following auxiliary equations is estimated. et^2 = 1.25 + .008 Z1 + .42 Z2 + .68 Z3 R^2= .074 n = 60 Carry out a LM test for heteroscedasticity.

Reference no: EM131431989

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