The null hypothesis for the Goldfeld-Quandt test is
A) $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } = 0$
B) $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } \neq 0$
C) $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } = 1$
D) $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } \neq 1$

Question

Quizplus · Accepted Answer

The null hypothesis for the Goldfeld-Quandt test is that the variance of the error terms in the regression model is the same for both groups, which is equivalent to saying that the ratio of the sum of squared errors (SSE) for the two groups is equal to 1. Therefore, the correct null hypothesis is $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } = 1$, option C.

The Null Hypothesis for the Goldfeld-Quandt Test Is A) H0:USS2/USS1=0H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } = 0H0​:USS2​/USS1​=0

The Null Hypothesis for the Goldfeld-Quandt Test Is
A) $H _ { 0 } : U S S _ { 2 } / U S S _ { 1 } = 0$