What will you conclude about a regression model if the Breusch-Pagan test results in a small p-value?
A)The model contains homoskedasticty.
B)The model contains heteroskedasticty.
C)The model contains dummy variables.
D)The model omits some important explanatory factors.

Question

Quizplus · Accepted Answer

A small p-value in the Breusch-Pagan test indicates that there is heteroskedasticity present in the regression model. This means that the variance of the errors is not constant across all levels of the independent variables, which violates one of the assumptions of linear regression.

What Will You Conclude About a Regression Model If the Breusch-Pagan