The breusch-pagan test, Advanced Statistics

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 > 1640_Tests for Heteroscedasticity.png

MTB > let k2=sum(c20)/1519

MTB > let c22 = c20/k2

C20 = sqres

C22 = gt

Regression Analysis: gt versus income, totexp, age, nk

The regression equation is

gt = 1.15 + 0.000130 income - 0.00135 totexp + 0.00095 age - 0.0424 nk

Predictor       Coef    SE Coef      T      P

Constant      1.1494     0.2336   4.92  0.000

income     0.0001296  0.0007340   0.18  0.860

totexp     -0.001345   0.001034  -1.30  0.193

age         0.000948   0.005248   0.18  0.857

nk          -0.04239    0.08131  -0.52  0.602

S = 1.54236   R-Sq = 0.1%   R-Sq(adj) = 0.0%

Analysis of Variance

Source              DF        SS           MS       F        P

Regression         4     5.364        1.341  0.56  0.689

Residual Error  1514  3601.594  2.379

Total                1518  3606.958

Source  DF  Seq SS

income   1   0.443

totexp   1   4.195

age      1   0.080

nk       1   0.647

MTB > let k3 = 5.364/2

MTB > print k3

Data Display

K3    2.68200

Inverse Cumulative Distribution Function

Chi-Square with 2 DF

P( X <= x )        x

       0.95  5.99146

MTB > # since Q=ESS/2 = 2.68200 < chi = 5.99 we have no hetero from Breusch-Pagan Test

Since Q = 2.68200 < 5.99 = 1640_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.

Posted Date: 3/4/2013 5:52:00 AM | Location : United States







Related Discussions:- The breusch-pagan test, Assignment Help, Ask Question on The breusch-pagan test, Get Answer, Expert's Help, The breusch-pagan test Discussions

Write discussion on The breusch-pagan test
Your posts are moderated
Related Questions
Ignorability : The missing data mechanism is said to be ignorable for likelihood inference if (1) the joint likelihood for the responses of the interest and missing data indicators

Bayesian confidence interval : An interval of the posterior distribution which is so that the density of it at any point inside the interval is greater than that of the density at

importance of mathamatical expection in business

sales per day for a product are as follows: x= 10, 11, 12, 13 (p)= 0.2, 0.4, 0.3, 0.1 obtain mean and variance of daily sale. if the profit is described by the following equation p

The type of longitudinal study in which the subjects receive different treatments on the various occasions. Random allocation is required to determine the order in which the treatm

Cauchy integral : The integral of the function, f (x), from a to b are de?ned in terms of the sum   In the statistics this leads to the below shown inequality for the expecte

2 jobs n machines,graphical method,how to determine which job should proceed first on each machine

Longitudinal data : The data arising when each of the number of subjects or patients give rise to the vector of measurements representing same variable observed at the number of di

Surveys which use lists related with the vital statistics to sample individuals for the further information. For instance, the 1988 National Mortality Follow back Survey sampled de

historigrams and histogram