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In: Statistics and Probability

How to detect heteroscedasticity in the regression model? Look at the residual plots against each independent...

How to detect heteroscedasticity in the regression model? Look at the residual plots against each independent predictor. A “V” or “U” shape pattern indicates that the error terms do not have homogeneous variance. true or false

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Expert Solution

SOLUTION:

From given data,

How to detect heteroscedasticity in the regression model?

Look at the residual plots against each independent predictor. A “V” or “U” shape pattern indicates that the error terms do not have homogeneous variance. true or false

To detect heteroscedasticity in the regression model we have some true conditions like,

  • We have to check if the regression model is linear and there is no ommitted variables.
  • We have to test equality of variances using the Lack of fit test

So, The condition which is given in the question that is " Look at the residual plots against each independent predictor. A “V” or “U” shape pattern indicates that the error terms do not have homogeneous variance" will not allow to detect heteroscedasticity in the regression model so this condition is false.


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