Question

Consider the model, Yi = Bo + B1 X1,1 + B2 X2,1 + Uj, where sorting the residuals based on the X1,; and X2,1 gives: X1 X2 Goldfeld-Quandt Statistic 1.475 0.843 If there is heteroskedasticity present at the 5% critical-F value of 1.624, then choose the most appropriate heteroskedasticity correction method. O A. Not enough information. OB. White's heteroskedastic-consistent standard errors C. Heteroskedastic correction based on X1. Ο Ο Ο D. Heteroskedastic correction based on X2. E. No heteroskedastic correction needed.

Answer 1

Sol:

Given that:

In statistics heteroskedasticity happens when the standard errors of a variable mentioned over a specific amount of time are non constant

Consider the model,
Bo + B1X1,1 + B2X2,1 + U
, where sorting the residuals based on the
1.4
and
2.

Goldfeld-Quandt Statistic	1.475	0.843

If there is heteroskedasticity present at the 5% critical-F value of 1.624

Based on the given data the answer is

B) White's heteroskedastic-consistent standard errors

Option " B " is correct .

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