169 Heteroskedasticity test in R

This video explains how to detect heteroscedasticity in econometrics, a common issue that affects the reliability of statistical inference. We'll explore visual methods by examining residuals for fan shapes or changing spreads, and then delve into formal statistical tests. Specifically, the Breusch-Pagan and White tests are detailed, covering their underlying logic, hypotheses, and how they are implemented. The importance of interpreting p-values from these tests to decide between homoscedasticity and heteroscedasticity is highlighted. Finally, we walk through an R example using the birth weight dataset to practically apply these tests and understand their output. Visit AxiomTutoring.com for more resources and subscribe to @AxiomTutoringCourses.