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Heterosced and Normality in Eviews
Heterosced and Normality in Eviews
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Step 3: Scroll down to Actual, Fitted, Residual and select actual fitted residual table.
Step 4: The actual, fitted residual table will look like this:
Next if
you
like
you can
copy
and
paste
the
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residual and fitted columns of data into Excel and plot Residual Vs. Predicted values.
Or you can do the following to do the plot in E-views.
PLOTTING RESID Vs. FITTED VALUES IN E-Views
Step1: Generate fitted values in E-views. Start with the estimation box and click on the
forecast button.
Click on the OK
button and yf
will be created.
You will see a graph like the one below. This is NOT WHAT YOU WANT.
After you hit OK you get the desired graph of Resid Vs. Fitted values that you want!!
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GENERATING THE WHITE STAT FOR THE WHITE TEST
Step 1: From the regression equations results box click on View
Step 2: Scroll down to Residual Tests and click on White Heteroskedasticity no cross
terms
The output that follows gives you Whites Test statistic. If this number is larger than the
critical Chi-square value from the table you have a problem with Heteroskedasticity.
Then click OK a couple of times and you should get regression results with standard
errors that are adjusted for Heteroscedasticity
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Step 3: Read the Jarque Bera stat to the right of the Histogram, if the number is bigger
than 5.99 (Chi-square with 2 df at the 5 % level) your error terms are not normally
distributed and you have a problem.