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

Probability, Modern hotels and certain establishments make use of an electr...

Modern hotels and certain establishments make use of an electronic door lock system. To open a door an electronic card is inserted into a slot. A green light indicates that the doo

Disability adjusted life years (dalys), This is an attempt to measure the s...

This is an attempt to measure the suffering caused by the illness which takes into the account both the years of the potential life lost due to the premature mortality as well as t

Fisher''s scoring method, This is an alternative to the Newton-Raphson tech...

This is an alternative to the Newton-Raphson technique for optimization (finding out the minimum or the maximum) of some function, which includes replacing the matrix of second der

Normal distribution, Your first task is to realize two additional data gene...

Your first task is to realize two additional data generation functions. Firstly, extend the system to generate random integral numbers based on normal distribution. You need to stu

Extreme value distribution, The probability distribution, f (x), of largest...

The probability distribution, f (x), of largest extreme can be given as    The location parameter, α is the mode and β is the scale parameter. The mean, variance skewn

Business Statistic HW., Hello , I have a business statistic HW that is due ...

Hello , I have a business statistic HW that is due after 23 hours exactly for now . I need full and details answers please , plus they must be in a done and typed in a word or exce

Bootstrap, Bootstrap : The data-based simulation method/technique for the s...

Bootstrap : The data-based simulation method/technique for the statistical inference which can be used to study the variability of the estimated characteristics of the probability

Define lagging indicators, Lagging indicators: The part of a collection of...

Lagging indicators: The part of a collection of the economic time series designed to give information about the broad swings in measures of the aggregate economic activity known a

Gllamm, Gllamm is a program which estimates the generalized linear latent ...

Gllamm is a program which estimates the generalized linear latent and mixed models by the maximum likelihood. The models which can be fitted include structural equation models mul

Describe length-biased sampling, Length-biased sampling : The bias which ar...

Length-biased sampling : The bias which arises in the sampling scheme based on the visits of patient, when some individuals are more likely to be chosen than others simply because

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