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Stabilizing heteroscedasticity for butterfly-distributed residuals by the weighting absolute centered external variable

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  • Resit Çelik

Abstract

In the current study, a new method by the weighting absolute centered external variable (WCEV) was proposed to stabilize heteroscedasticity for butterfly-distributed residuals (BDRs). After giving brief information about heteroscedasticity and BDRs, WCEV was introduced. The WCEV and commonly used variance stabilizing methods are compared on a simple and a multiple regression model. The WCEV was also tested for other type of heteroscedasticity patterns. In addition to heteroscedasticity, other regression assumptions were checked for the WCEV.

Suggested Citation

  • Resit Çelik, 2015. "Stabilizing heteroscedasticity for butterfly-distributed residuals by the weighting absolute centered external variable," Journal of Applied Statistics, Taylor & Francis Journals, vol. 42(4), pages 705-721, April.
    • Handle: RePEc:taf:japsta:v:42:y:2015:i:4:p:705-721
    DOI: 10.1080/02664763.2014.980791
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    References listed on IDEAS

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    1. Maria Carapeto & William Holt, 2003. "Testing for heteroscedasticity in regression models," Journal of Applied Statistics, Taylor & Francis Journals, vol. 30(1), pages 13-20.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Ann Oberg & Marie Davidian, 2000. "Estimating Data Transformations in Nonlinear Mixed Effects Models," Biometrics, The International Biometric Society, vol. 56(1), pages 65-72, March.
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