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

Chapter 7&8, Chapter 7 2. Describe the distribution of sample means (shape...

Chapter 7 2. Describe the distribution of sample means (shape, expected value, and standard error) for samples of n =36 selected from a population with a mean of µ = 100 and a sta

Non-randomized clinical trial, Non-randomized clinical trial is the clinic...

Non-randomized clinical trial is the clinical trial in which the series of consecutive patients receive a new treatment and those which respond (according to some of the pre-defin

Biplots, Biplots: It is the multivariate analogue of the scatter plots, wh...

Biplots: It is the multivariate analogue of the scatter plots, which estimates the multivariate distribution of the sample in a few dimensions, typically two and superimpose on th

Quantitative Analysis for Management Chapter 4, 4-13. Students in a manage...

4-13. Students in a management science class have just received their grades on the first test. The instructor has provided information about the first test grades in some previou

Window variables, Window variables are the variables measured during the c...

Window variables are the variables measured during the constrained interval of an observation period which is accepted as the proxies for the information over the whole period. Fo

Explain prospective studies, Prospective study : The studies in which indiv...

Prospective study : The studies in which individuals are followed-up over the period of time. A general example of this type of investigation is where the samples of individuals ar

Baddeley''smetric, Baddeley'smetric : A manner of measuring the 'error' in ...

Baddeley'smetric : A manner of measuring the 'error' in the image processing technique or method. The metric is derived using the fundamental theory from the stochastic geometry an

Conjoint analysis, Conjoint analysis : The method used basically in market ...

Conjoint analysis : The method used basically in market research which is similar in many respects to the various dimensional scaling. The method attempts to assign values to the l

Pasture trials, Pasture trials is the study in which the pastures are subj...

Pasture trials is the study in which the pastures are subjected to number of treatments (types of forage, animal management systems, agronomic treatments, and many more)The grazin

Calculate the probability, (a) A plane timetable states that a particular p...

(a) A plane timetable states that a particular plane is due at 2pm but the actual arrival time isuniformly distributed between 1pm and 3pm. (i) Calculate the probability that th

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