what is meant by heteroscedasticity? describe any method of testing for the presence of heteroscedasticity
Hello,
In statistics, heteroskedasticity (or heteroscedasticity) happens when the standard deviations of a predicted variable, monitored over different values of an independent variable or as related to prior time periods, are non-constant.
There are three primary ways to test for heteroskedasticity. You can check it visually for cone-shaped data, use the simple Breusch-Pagan test for normally distributed data, or you can use the White test as a general model.
Thank you.
Hello aspirant ,
I hope you are fine. As per your mentioned query, heteroscedasticity in statistics happened when the standard deviations of a predicted variables, monitored over different value of an independent variable or as related to prior time periods , non constant.
There are several methods by which the presence of heteroscedasticity can be tested. The most widely used test for heteroscedasticity is the Breusch - pagan test . This test uses multiple linear regression , where the outcome variable is the squares residuals. The predictors are the same predictor variable as used in the original mode.
I hope this will be helpful for you.
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Good wishes !!
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