Assuming you are interested in conducting a Goldfeld-Quandt test at a 5% significance level and the regression model is estimated on each sub-sample with residual variances and , , and . What would your conclusion be?
A) Do not reject the null hypothesis of heteroscedasticity
B) Reject the null hypothesis of homoscedasticity
C) Reject the null hypothesis of heteroscedasticity
D) Do not reject the null hypothesis of homoscedasticity
Correct Answer:
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