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st: Hetero explanation
Dear fellow,
While trying the BP test, I get the following,
Breusch-Pagan / Cook-Weisberg test for heteroskedasticity
Ho: Constant variance
Variables: fitted values of lwage
chi2(1) = 4.23
Prob > chi2 = 0.0112
Ho- varicane of residuals are homo
H1-hetero present
is this homo or hetero? 0.0112 is very small p value so i am thinking
accepting Ho and that this is homo. but how can we define the size of p
value? do we compare it with 0.05 again?
Cheers
Jo
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