MATLAB: An Introduction with Applications
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ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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9) The following results are from a regression where the dependent variable is GRADUATION RATE and the independent variables are % OF CLASSES UNDER 20, % OF CLASSES OF 50 OR MORE, STUDENT/FACULTY RATIO, ACCEPTANCE RATE, 1ST YEAR STUDENTS IN TOP 10% OF HS CLASS. The data were split into 2 samples and the following regression results were obtained from the split data.
a) What is heteroscedasticity?
(b) Why is heteroscedasticity a problem?
c) Based on a comparison of the two sets of output, does it appear that there is heteroscedasticity in the data set? Explain. Be sure to write down your null and alternative hypothesis, calculate the test statistic, and find your critical value (test at the 5% level of significance).
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