Breusch-pagan test, Advanced Statistics

Assignment Help:

The Null Hypothesis - H0:  There is no heteroscedasticity i.e. β1 = 0

The Alternative Hypothesis - H1:  There is heteroscedasticity i.e. β1 0

Reject H0 if Q = ESS/2  > 2094_Tests for Heteroscedasticity.png

Regression Analysis: gt versus totexp, age, nk

 

The regression equation is

gt = 1.19 - 0.00208 totexp + 0.00002 age + 0.0111 nk

Predictor        Coef    SE Coef      T      P    VIF

Constant       1.1860     0.2229   5.32  0.000

totexp     -0.0020802  0.0009279  -2.24  0.025  1.045

age          0.000015   0.005019   0.00  0.998  1.038

nk            0.01105    0.07775   0.14  0.887  1.007

 

S = 1.46342   R-Sq = 0.3%   R-Sq(adj) = 0.1%

Analysis of Variance

Source            DF        SS     MS     F      P

Regression         3    11.167  3.722  1.74  0.157

Residual Error  1498  3208.095  2.142

  Lack of Fit    644  1373.116  2.132  0.99  0.540

  Pure Error     854  1834.980  2.149

Total           1501  3219.262

 

MTB > let k3=11.167/2

MTB > print k3

 

Data Display

K3    5.58350

Inverse Cumulative Distribution Function

Chi-Square with 3 DF

P( X <= x )        x

       0.95  7.81473

MTB > InvCDF .95;

Since Q = 5.58350 < 7.81 = 2094_Tests for Heteroscedasticity.png, there is sufficient evidence to accept H0 which suggests that there is no heteroscedasticity from the Breusch-Pagan test at 5% significance level which means that one or more slopes are zero.


Related Discussions:- Breusch-pagan test

Exploratory data analysis, The approach to data analysis which emphasizes t...

The approach to data analysis which emphasizes the use of informal graphical procedures not based on former assumptions about structure of the data or on the formal models for the

Ordered alternative hypothesis, Ordered alternative hypothesis is a hypoth...

Ordered alternative hypothesis is a hypothesis or assumption which speci?es an order for the set of parameters of interest as an alternative to the equality, rather than simply th

Explain prevalence, Prevalence : The measure of the number of people in a p...

Prevalence : The measure of the number of people in a population who have a certain disease at a given point in time. It c an be measured by two methods, as point prevalence and p

Observational study, Observational study   is the study in which the object...

Observational study   is the study in which the objective is to discover cause-and-effect relationships but in which it is not feasible to use the controlled experimentation, in th

Factor rotation, Generally the final stage of an exploratory factor analysi...

Generally the final stage of an exploratory factor analysis in which factors derived initially are transformed to build their interpretation simpler. Generally the target of the pr

Protocol, Protocol is the formal document outlining the proposed process f...

Protocol is the formal document outlining the proposed process for carrying out the clinical trial. The basic features of the document are to study the objectives, patient selecti

Dot plot, The more effective display than a number of other methods or tech...

The more effective display than a number of other methods or techniques, for instance, pie charts and bar charts, for displaying the quantitative data which are labeled. An instanc

Mardia''s multivariate normality test, Mardia's multivariate normality test...

Mardia's multivariate normality test is a test that a set of the multivariate data arise from the multivariate normal distribution against departures due to the kurtosis. The test

Weighted least squares, Weighted least squares  is the method of estimation...

Weighted least squares  is the method of estimation in which the estimates arise from minimizing the weighted sum of squares of the differences between response variable and its pr

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd