In concept checker 9 (Schweser ) page 217, the answer is we have hetrosek, with the given data, eg p-value =0.0005 and BP test stat = 17.7. No level of significance is given. how do we reach this conclusion when we dont have level of significance. yes p-value is very small and will lead to rejection of null, but still i am not sure. do we also look for chi-square value in table? Thanks
That’s correct; the P value is very small. You could reject at the 0.005% significance level. Suppose you’re doing this test in real life. That p-value is mighty small. Wouldn’t you come up with the same conclusion? Hence, you can reject the null and conclude there is hetereoskedasticity present.