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  • 4 Khwhurvnhgdvwlflw

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    NISHANT
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    1. Heteroskedasticity refers to non-constant variance in the error term, which often occurs in cross-sectional data where there is a scale effect. 2. If heteroskedasticity is present, OLS estimators are still linear and unbiased but no longer have minimum variance properties. Variance formulas will be biased. 3. The Breusch-Pagan test can detect heteroskedasticity by regressing the absolute value of the residuals on transformations of the independent variables. If the test rejects the hypothesis that the coefficient is zero, there is likely heteroskedasticity present.

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    Heterosceaditiy

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    L18

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    1. Heteroskedasticity refers to non-constant variance in the error term, which often occurs in cross-sectional data where there is a scale effect. 2. If heteroskedasticity is present, OLS estimators are still linear and unbiased but no longer have minimum variance properties. Variance formulas will be biased. 3. The Breusch-Pagan test can detect heteroskedasticity by regressing the absolute value of the residuals on transformations of the independent variables. If the test rejects the hypothesis that the coefficient is zero, there is likely heteroskedasticity present.

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    © All Rights Reserved
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    13 views2 pages

    4 Khwhurvnhgdvwlflw

    Uploaded by

    NISHANT
    1. Heteroskedasticity refers to non-constant variance in the error term, which often occurs in cross-sectional data where there is a scale effect. 2. If heteroskedasticity is present, OLS estimators are still linear and unbiased but no longer have minimum variance properties. Variance formulas will be biased. 3. The Breusch-Pagan test can detect heteroskedasticity by regressing the absolute value of the residuals on transformations of the independent variables. If the test rejects the hypothesis that the coefficient is zero, there is likely heteroskedasticity present.

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    © All Rights Reserved
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