Question

Suppose you conduct the modified White’s Test. You estimate the regression with the squared residuals as...

Suppose you conduct the modified White’s Test. You estimate the regression with the squared residuals as the dependent variable and predicted values and predicted values squared as independent variables. From the regression results, you get the F-statistic is 0.353 with a p-value of 0.414. At a Level of Significance of 5%, what does the modified White’s Test say about the Linear Regression?

Group of answer choices

Heteroskedasticity is unlikely to be a problem with the Linear Regression

Heteroskedasticity is likely to be a problem with the Linear Regression

The coefficients of the Linear Regression are likely biased

The Linear Regression doesn’t have a good Goodness-of-Fit

Homework Answers

Answer #1

P-value rule for a two-tailed test:--

if the p-value is less than the alpha/2 then reject the null hypothesis

if the p-value is greater than the alpha/2 then fail to reject the null hypothesis

H0: no heteroscedastic

Ha: heteroscedastic

here, p-value = 0.414

alpha/2 = 5%/2 = 0.05/2 = 0.025

0.414 > 0.025

=> p-value > alpha/2

=> fail to reject null hypothesis

hence no heteroscedastic

hence correct option is A i.e. Heteroskedasticity is unlikely to be a problem with the Linear Regression

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
8. Calculating SSR, SSE, SST, and R-squared Suppose you are interested in studying the effects of...
8. Calculating SSR, SSE, SST, and R-squared Suppose you are interested in studying the effects of education on wages. You gather four data points and use ordinary least squares (OLS) to estimate the following simple linear model: wage=β0+β1educ+u where wage = hourly wage in dollars educ = years of formal education After running your regression, you decide to examine how the fitted values of wages from your regression compare to the actual wages in your data set. These data are...
IV. Your friend mentions that pre-test measures was taken and wants to take that information into...
IV. Your friend mentions that pre-test measures was taken and wants to take that information into account. You suggest using the pre-test value as a covariate to see what effect does it have on the response. First you fit a simple linear regression of diastolic on pre-diastolic. Call: lm(formula = diastolic ~ prediastolic, data = a) Residuals:     Min      1Q Median      3Q     Max -11.268 -4.627   1.101   3.652 10.644 Coefficients:              Estimate Std. Error t value Pr(>|t|)    (Intercept)   30.7307     9.9041   3.103...
Applying Simple Linear Regression to Your favorite Data (Please confirm with the instructor the dataset you...
Applying Simple Linear Regression to Your favorite Data (Please confirm with the instructor the dataset you find before you work on this question) Many dependent variables in business serve as the subjects of regression modeling efforts. We list such variables here: Rate of return of a stock Annual unemployment rate Grade point average of an accounting student Gross domestic product of a country Choose one of these dependent variables, or choose some other dependent variable, for which you want to...
Managerial Report, Chapter 15 (modified) 1. Develop the following estimated regression equations, using Amount Charged as...
Managerial Report, Chapter 15 (modified) 1. Develop the following estimated regression equations, using Amount Charged as your Dependent variable: a. First using annual income as the Independent variable b. Second using household size as the Independent variable Which variable is the better predictor of annual credit card charges? To answer this question, provide and interpret your R2 for each model. 2. Develop an estimated regression equation with annual income and household size as the Independent variables. As your Dependent variable,...
(1) A Chi-squared test is typically used to test for any of the following except which...
(1) A Chi-squared test is typically used to test for any of the following except which of the following? (A) If a mathematical model accurately predicts our observed frequencies of data values. (B) If a mathematical model accurately predicts the total number of observed data values. (C) If a mathematical model accurately predicts the pattern of our observed data values. (D) Whether two factors present in a population are independent of one another. (E) Whether a series of populations experience...
Regression Analysis with a Minitab output Assume that your company owns multiple retail outlets in cities...
Regression Analysis with a Minitab output Assume that your company owns multiple retail outlets in cities across the United States. You conduct a study to determine if daily sales levels (in hundreds of dollars) can be predicted by the number of competitors that are located within a one-mile radius of each location and city population (in thousands of people). Therefore, the dependent variable is SALES and the two independent variables are NUMBER OF COMPETITORS and CITY POPULATION. Your research team...
The purpose is to work through an analysis of the data using several different regression techniques....
The purpose is to work through an analysis of the data using several different regression techniques. The data are as follows: Temp Soak Time SoakPct DiffTime DiffPct Pitch 1650 0.58 1.1 0.25 0.9 0.013 1650 0.66 1.1 0.33 0.9 0.016 1650 0.66 1.1 0.33 0.9 0.015 1650 0.66 1.1 0.33 0.95 0.016 1600 0.66 1.15 0.33 1 0.015 1600 0.66 1.15 0.33 1 0.016 1650 1 1.1 0.5 0.8 0.014 1650 1.17 1.1 0.58 0.8 0.021 1650 1.17 1.1 0.58...
A hypothesis test using a Pearson’s correlation coefficient is an example of what? A nonparametric statistic...
A hypothesis test using a Pearson’s correlation coefficient is an example of what? A nonparametric statistic A descriptive statistic An inferential statistic A power statistic 1 points    QUESTION 48 What would the scatter plot show for data that produce a Pearson correlation of r = +0.88? Points clustered close to a line that slopes down to the right Points clustered close to a line that slopes up to the right Points widely scattered around a line that slopes up...
1. After performing an ANOVA test, with (3,4) degrees of freedom, for data collected during an...
1. After performing an ANOVA test, with (3,4) degrees of freedom, for data collected during an experiment trying to determine if there is at least one difference between groups. You get a calculated F value of 7.52. Using the table below, find the appropriate critical F value. What should be your conclusion(s), based on those 2 F values and α? Select ALL that apply Critical values of F (α= 0.05) Group of answer choices: A. My calculated F value is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT