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
Bivariate boxplot : A bivariate analogue of boxplot in which the inner area contains 50%of the data, and a 'fence' helps to identify the potential outliers. Robust methods or techn

Non-response is the term generally used for the failure to give the relevant information being collected in the survey. Poor response can be because of the variety of causes, for

This process of estimating from a data set those values lying beyond range of the data. In the regression analysis, for instance, a value of the response variable might be estimate

Compliance : The extent to which the participants in a clinical trial follow trial protocol, for instance, following both the intervention regimen and trial procedures (clinical vi

what are all the organs

The theorem relating structure of the likelihood to the concept of the sufficient statistic. Officially the necessary and sufficient condition which a statistic S be sufficient for

A radically different approach of dealing with the uncertainty than the traditional probabilistic and the statistical methods. The necessary feature of the fuzzy set is a membershi

Machine learning  is a term which literally means the ability of a machine to recognize patterns which have occurred repetitively and to improve its performance based on the past

Randomized response technique : The procedure for collecting the information on sensitive issues by means of the survey, in which an element of chance is introduced as to what quer

Mean-range plot   is the graphical tool or device useful in selecting a transformation in the time series analysis. The range is plotted against the mean for each of the seasona