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Consider the following regression model. The dependent variable Yi using data for 50 different countries in the year 2014, where X1i , X 2i and
Consider the following regression model. The dependent variable Yi using data for 50 different countries in the year 2014, where X1i , X 2i and X3i are three explanatory variables.
Yi = 0 + 1X1i - 2X2i + 3X3i +
R2 = 0.832
If the variance of the residual is not constant was suspected in the model.
Based on the information above perform an appropriate test to detect the problem at 5% level of significance given auxiliary coefficient of determination is equal 0.398.
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