An alternative method correcting BDR type of heteroskedasticity by the weighting re-estimated absolute residuals. Issue 23 (2nd December 2017)

• Record Type: Journal Article
• Authors: Çelik, Reşit; Erar, Aydın
• Is Part Of: Communications in statistics. Volume 46:Issue 23(2017)
• Page Start: 11514
• Page End: 11538
• Publication Date: 2017-12-02
• Subjects: Butterfly distributed residuals -- Centered external variable -- Heteroskedasticity -- Non constant variance -- Re-estimated absolute residuals -- Standard deviation function -- Variance function.; 62J05 -- 62J20; Mathematical statistics -- Periodicals; Mathematics; Statistics; 519.2
• DOI: 10.1080/03610926.2016.1271429
• Languages: English
• ISSNs: 0361-0926

Abstract

ABSTRACT: The aim of this paper is to introduce a new method which corrects residual variances for the butterfly distributed residuals (BDR). Distribution theory, confidence intervals, and tests of hypotheses are valid and meaningful only if the standard regression assumptions are satisfied. Heteroskedasticity is one of the violations of these assumptions and BDR is another type of heteroskedasticity. This study reveals an alternative approach to correct the BDR type of heteroskedasticity by the weighting re-estimated absolute residuals (WRAR). After giving brief information about heteroskedasticity and BDR type of heteroskedasticity, WRAR is introduced. WRAR and the usual variance stabilizing techniques are compared on multiple and simple regression models.