Breusch-Pagan Test - Chi square

CFA Level II Quant
#1

I have a little question regard the Breusch-Pagan test - such a sexy name for test…

There is an EOC question where the Chi-Square test is done at the 0.05 level of significance whilst the main regression is done at the 0.01 level? The test is a 1 tail test so I fail to see why the test stat is taken at the 0.05 level? I thought it would also be take at the 0.01 level, same as the main regression… Its q11 from reading 10, anyone could point me in the correct direction that would be awesome…

#2

They should’ve mentioned the significance level for the chi square but when it doesnt you should always just use 5% for all tests.

The F-Test and T-test has nothing to do with the test for Heteroskedasticity so you cant just use the same significance level.

Badly written question.

#3

Ok thanks for your help, much appreciated.