Tag: breusch pagan test
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Heteroscedasticity: Detection, Problem and Remedies
What is Heteroscedasticity? One of the crucial assumption of linear regression models is that the residual or error term needs to have constant variance and this assumption is known as Homoscedasticity. However, when the residual variance is not constant we call it a case of Heteroscedasticity. Heteroscedasticity refers to the situation in which the variability…
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