Sood remarks that the dramatic increase in price over the past 30 years leads he

Question

Sood remarks that the dramatic increase in price over the past 30 years leads her to suspect heteroskedasticity in the regression results. She suggests to Singh that they conduct a Breusch-Pagan test for heteroskedasticity. The most appropriate method to conduct this test is: A Regress the variance of error terms from the estimated regression equation on independent variables B Regress the square of error terms from the estimated regression equation on dependent variables C Regress the square of error terms from the estimated regression equation on independent variables

Explanation / Answer

Option B is correct

Regress the square of error terms from the estimated regression equation on dependent variables

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