heteroscedastilisus
Heteroscedasticity refers to a situation in statistics where the variance of a variable is not constant across different levels of another variable. This concept is crucial in regression analysis and other statistical models, as it can significantly impact the validity and reliability of the results. When heteroscedasticity is present, the standard errors of the estimated coefficients are biased, leading to incorrect hypothesis tests and confidence intervals. This bias can result in incorrect conclusions about the significance of the predictors in the model.
There are several methods to detect heteroscedasticity, including visual inspection of residual plots, statistical tests such
Heteroscedasticity can arise from various sources, such as measurement errors, omitted variable bias, or structural breaks