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

Autocorrelation, This graph for Cross Correlation Function for RES1, RES1 s...

This graph for Cross Correlation Function for RES1, RES1 shows that there is possibly negative autocorrelation as there are alternating spikes; also the first spike is negative whi

Calculate the standard deviation, Q. A toothpaste company want to know if i...

Q. A toothpaste company want to know if its new product increases the length of time in-between dentist visit to its user. The company sets a target for 180 days to determine if it

Describe population pyramid, Population pyramid : The diagram designed to s...

Population pyramid : The diagram designed to show the comparison of the human population by sex and age at a given instant time, consisting of a pair of the histograms, one for eve

Common cause failures (ccf), Common cause failures (CCF): Simultaneous fai...

Common cause failures (CCF): Simultaneous failures of the number of components due to a same reason. A reason can be external to the components, or it can be the single failure wh

Non parametric maximum likelihood (npml), Non parametric maximum likelihood...

Non parametric maximum likelihood (NPML) is a likelihood approach which does not need the specification of the full parametric family for the data. Usually, the non parametric max

Explain human height growth curves, Human height growth curves : The growth...

Human height growth curves : The growth of human height is, in common, remarkably regular, apart from the pubertal growth spurt. The satisfactory longitudinal development curve is

Collapsing categories, Collapsing categories : A procedure generally applie...

Collapsing categories : A procedure generally applied to contingency tables in which the two or more row or column categories are combined, in number of cases so as to yield the re

Describe martingale, Martingale: In the gambling context the term at first...

Martingale: In the gambling context the term at first referred to a system for recouping losses by doubling the stake after each loss has occured. The modern mathematical concept

Graph theory, Why Graph theory? It is the branch of mathematics concerned w...

Why Graph theory? It is the branch of mathematics concerned with the properties of sets of points (vertices or nodes) some of which are connected by the lines known as the edges. A

Two-phase sampling, Two-phase sampling is the sampling scheme including tw...

Two-phase sampling is the sampling scheme including two distinct phases, in the first of which the information about the particular variables of interest is collected on all the m

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