Perform and goldfeld - quandt test for heteroscedasticity


Consider a regression using 30 observations that has a constant term and 2 independent variables G, and Y.

The observations a sorted according to the variable Y from smallest to largest. The regression is then estimated on two groups, one with the lowest values of Y and one with the highest values of Y. Each group has 11 observations each. The RSS for first group is 321, the RSS for second group is 28101.

Perform and Goldfeld - Quandt test for heteroscedasticity at the 1 percent level.

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Econometrics: Perform and goldfeld - quandt test for heteroscedasticity
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