2022
DOI: 10.33369/jsds.v1i1.21011
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A Comparison of Weighted Least Square and Quantile Regression for Solving Heteroscedasticity in Simple Linear Regression

Abstract: Regression analysis is the study of the relationship between dependent variable and one or more independent variables. One of the important assumption that must be fulfilled to get the regression coefficient estimator Best Linear Unbiased Estimator (BLUE) is homoscedasticity. If the homoscedasticity assumption is violated then it is called heteroscedasticity. The consequences of heteroscedasticity are the estimator remain linear and unbiased, but it can cause estimator haven‘t a minimum variance so the estimat… Show more

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Cited by 3 publications
(2 citation statements)
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“…There are several requirements in the OLS method, that is, the data shall be normally distributed, no autocorrelation and multicollinearity, and homoscedasticity. 46,47 Without these requirements, the OLS method cannot be adopted as the best linear unbiased estimator. Considering these constraints, the researchers decided to use other methods for comparison, that is, LASSO Linear Regression and Ridge Linear Regression.…”
Section: Methodsmentioning
confidence: 99%
“…There are several requirements in the OLS method, that is, the data shall be normally distributed, no autocorrelation and multicollinearity, and homoscedasticity. 46,47 Without these requirements, the OLS method cannot be adopted as the best linear unbiased estimator. Considering these constraints, the researchers decided to use other methods for comparison, that is, LASSO Linear Regression and Ridge Linear Regression.…”
Section: Methodsmentioning
confidence: 99%
“…4. If homoscedasticity assumption was violated, then heteroscedasticity occurs, WLS regression can be used instead (Fransiska et al, 2022), which giving weights W. The weight that will be tested are √ ̌ . 5.…”
Section: Methodsmentioning
confidence: 99%