ASSIGNMENT NO # 3
QAISAR SHAHZAD
BECF15M033
DEPARTMENT OF ECONOMICS
Sample regression:
Dependent Variable: PRICES
Method: Least Squares
Date: 03/22/19 Time: 16:27
Sample (adjusted): 1 88
Included observations: 88 after adjustments
Breuch-Pagan Test:
Dependent Variable: UTSQ
Method: Least Squares
Date: 03/22/19 Time: 16:42
Sample (adjusted): 1 88
Included observations: 88 after adjustments
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.99
Lm = 4.16
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (4.16) < Chi (5.9). So there is no
problem of hetroskedosticity in our data.
Glesjer Test:
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.9
Lm = 4.723
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (4.723) < Chi (5.9). So there is
no problem of hetroskedosticity in our data.
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.9
Lm = 3.4
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (3.4) < Chi (5.9). So there is no
problem of hetroskedosticity in our data.
Park Test:
Dependent Variable: LOG(UTSQ)
Method: Least Squares
Date: 03/22/19 Time: 17:25
Sample (adjusted): 1 88
Included observations: 88 after adjustments
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.99
Lm = 3.761560
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (3.8) < Chi (5.9). So there is no
problem of hetroskedosticity in our data.
Sample 51-88
Price= f(rooms)
F-Crit = 1.72
F-Stat= 1.2
Interpretation:
If F calculated value is greater than F critical, then we reject H0 and accept H1. It means that
there is no problem of hetroskedosticity. The above result show that F-Statistic< F critical. So
there is no problem of hetroskedosticity in our data.
White Test:
Test Equation:
Dependent Variable: RESID^2
Method: Least Squares
Date: 04/01/19 Time: 18:20
Sample: 51 88
Included observations: 38
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.99
Lm = 3.80
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (3.80) < Chi (5.9). So there is no
problem of hetroskedosticity in our data.
ARCH Test:
Heteroskedasticity Test: ARCH
Test Equation:
Dependent Variable: RESID^2
Method: Least Squares
Date: 04/01/19 Time: 18:24
Sample (adjusted): 52 88
Included observations: 37 after adjustments
H0 = Homodoskesticity
H1 = Hetroskedosticity
Chi = 5.99
Lm = 3.80
Interpretation:
If lm value is smaller than Chi, then we reject H0 and accept H1. It means that there is no
problem of hetroskedosticity. The above result show that LM (3.80) < Chi (5.9). So there is no
problem of hetroskedosticity in our data.