When the following results are obtained when testing for heteroscedasticity what do they imply?
Chi 2 (1) = 16.98
Prob greater than chi2= 0.0000
1 answer
The results indicate that there is significant evidence of heteroscedasticity in the data. The chi-square value of 16.98 is larger than the critical value at the 0.05 significance level, and the probability associated with this chi-square value is very low (0.0000), further supporting the presence of heteroscedasticity. This suggests that the variability of the error terms is not constant across the data, violating one of the assumptions of many regression models.
1 answer