To Test Heteroscedasticity

3 tests will check the hetroscedasticity:

LM test
White test
Gold field test

2 variables are M2 and FDI

REGRESSION ANALYSIS
Dependent Variable: FDI
Method: Least Squares
Date: 11/19/11 Time: 15:03
Sample: 1980 2010
Included observations: 31
Variable

Coefficient

Std. Error

t-Statistic

Prob.

M2
C

0.000747
-170.3805

8.16E-05
184.9945

9.147871
-0.921003

0.0000
0.3646

R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat

0.742642
0.733768
757.8200
16654443
-248.4972
0.758677

Mean dependent var

S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)

975.7516
1468.709
16.16111
16.25362
83.68354
0.000000

M2 vs. FDI
6000000
5000000

M2

4000000
3000000
2000000
1000000
0
0

1000 2000 3000 4000 5000 6000

FDI

LM TEST
ARCH Test:
F-statistic
Obs*R-squared

6.618677
5.735641

Probability
Probability

0.015683
0.016624

Test Equation:
Dependent Variable: RESID^2
Method: Least Squares
Date: 11/19/11 Time: 15:40
Sample (adjusted): 1981 2010
Included observations: 30 after adjustments
Variable

Coefficient

Std. Error

t-Statistic

Prob.

C
RESID^2(-1)

336350.2
0.507626

214748.0
0.197314

1.566256
2.572679

0.1285
0.0157

R-squared
Adjusted R-squared
S.E. of regression
Sum squared resid
Log likelihood
Durbin-Watson stat

0.191188
0.162302
1080563.
3.27E+13
-458.3231
1.872869

Mean dependent var

S.D. dependent var
Akaike info criterion
Schwarz criterion
F-statistic
Prob(F-statistic)

554590.3
1180610.
30.68820
30.78162
6.618677
0.015683