Tests for heteroscedasticity, 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 nR2 > 1640_Tests for Heteroscedasticity.png

MTB > let c20 = c11*c11 

MTB > let c21 = c15*c15

C20 = sqres

C21 = sqrfits

C11 = RESI1

C15 = FITS1

Regression Analysis: sqres versus sqfits

The regression equation is

sqres = 0.00597 + 0.0168 sqfits

Predictor      Coef   SE Coef     T      P

Constant   0.005967  0.001281  4.66  0.000

sqfits     0.016760  0.009539  1.76  0.079

S = 0.0125463   R-Sq = 0.2%   R-Sq(adj) = 0.1%

Analysis of Variance

Source            DF         SS         MS     F      P

Regression         1  0.0004859  0.0004859  3.09  0.079

Residual Error  1517  0.2387891  0.0001574

Total           1518  0.2392750

MTB > let k1 = 1519*0.02

MTB > print k1

Data Display

K1    30.3800

Inverse Cumulative Distribution Function

Chi-Square with 1 DF

P( X <= x )        x

       0.95  3.84146

MTB > # Since nrsq = 1519*0.02 > chi = 3.8415, we have hetero from LM test

Since nR2 = 30.380 > 3.8415 = 1640_Tests for Heteroscedasticity.png, there is sufficient evidence to reject H0 which suggest that there is heteroscedasticity from the Lagrange Multiplier (LM) test at 5% significance level which means that one or more slopes are not zero.


Related Discussions:- Tests for heteroscedasticity

What is statistical inference, What is statistical inference?   Statis...

What is statistical inference?   Statistical inference can be defined as the  method of drawing conclusions from data which are subject to random variations. This is based o

Assignment, i need help for my assignment and the deadline is Friday

i need help for my assignment and the deadline is Friday

Times series plots, The time series for RESI1, HI1 and COOK1 have appeared ...

The time series for RESI1, HI1 and COOK1 have appeared again with different outlier values even though the 17 outliers found early were removed.

Daycare, facts and statistics about daycare

facts and statistics about daycare

Hot deck, Hot deck is a method broadly used in surveys for imputing the mi...

Hot deck is a method broadly used in surveys for imputing the missing values. In its easiest form the method includes sampling with replacement m values from the sample respondent

Relative poverty statistics, Relative poverty statistics is the statistics...

Relative poverty statistics is the statistics on the properties of populations falling below given fractions of average income which play a central role in debate of poverty. The

Epidemic, The rapid development or growth of the disease in a community or ...

The rapid development or growth of the disease in a community or region. Statistical thinking has made very much significant contributions to the understanding of such type of phen

Sequencing of 4 machines, how to resolve sequencing problem if jobs 6 given...

how to resolve sequencing problem if jobs 6 given and 4 machines given. how to apply johnson rule for making to machines under this conditions. please give solution as soon as poss

Describe respondent-driven sampling (rds), Respondent-driven sampling (RDS ...

Respondent-driven sampling (RDS ): The form of snowball sampling which starts with the recruitment of the small number of people in the target population to serve as the seeds. Aft

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