Question: Let the regression model between the corruption perception index (CPI) and per capita GDP (PGDP, constant 2015 USD) of high-income and low-income countries be given
Let the regression model between the corruption perception index (CPI) and per capita GDP (PGDP, constant 2015 USD) of high-income and low-income countries be given by ij 0 i ij ij CPI = ???? + ???? PGDP +???? , (i=1, 2, j = 1, 2,….., i n ), where i i E(???? |PGDP ) = 0, the form of heteroscedasticity is i 2
i i i n Var(???? |PGDP ) = ???? I , i = 1, 2, and Cov(????i ,????j ) = 0, ????i ???? j.
Discuss Bartlett’s test for detecting the presence of heteroscedasticity in CPI between two groups of countries. Collect the numerical data for two groups of countries and then testify.
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