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 = β0 + β1X1i - β2X2i + β3X3i + µ
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.
