The Medical datasets showed improved performances of EM with Global k-means initialization, in both homoscedastic
and heteroscedastic PNNs, over the usage of random initialization.
Otherwise, it would not have been possible to perform an accurate ANOVA test on the raw data because ANOVA assumes the data is homoscedastic
To finish the validation of the model, it was verified that the normality of the residual through the graph qq (Normal distribution test) and its distribution is random and homoscedastic
(see Figure 4).
The residual analysis of the four models in Figure 3 shows that there were no obvious patterns or clustering, the residuals were homoscedastic
, and the variance remained the same for every combination of values of the independent variables.
Based on the studentized residuals, the most extreme observations within each dataset are eliminated with the end results producing desired homoscedastic
Table 2 presents some preliminary diagnostic tests examining whether the residuals from an AR(1) process of the interest rate differentials follow a homoscedastic
or heteroscedastic process.
Because the errors appear to be homoscedastic
across regimes and serially uncorrelated, the formula above is case 1 in Bai (1997).
it], is homoscedastic
and uncorrelated with any of the explanatory variables, the fixed effects procedure results in unbiased estimates of the time-varying variables.
t] is independent, homoscedastic
and normal with a mean of zero.
As will be discussed in "Estimation Results," the benchmark model does not yield good estimation results; the error term of Japanese firms appears to be autocorrelated, and the variance of the error term is not homoscedastic
the variance of the generic population is constant across categories); and (2) that the generic population is homoscedastic
This specification is appropriate if these series--consumption, income, and wealth-- follow homoscedastic
linear processes in levels, with or without unit roots.