The first step in the Goldfeld-Quandt test is to
A)estimate the model and calculate the estimated residuals.
B)estimate the model and calculate the estimated residuals squared.
C)sort the data set from the lowest to the highest value of the dependent variable.
D)sort the data set from the lowest to the highest value of the suspect independent variable.

Question

Quizplus · Accepted Answer

The first step in the Goldfeld-Quandt test, which is used to test for heteroscedasticity, involves sorting the data set from the lowest to the highest value of the suspect independent variable. This is done before dividing the data into two or more groups and comparing the variances of the residuals across these groups.

The First Step in the Goldfeld-Quandt Test Is to