CFAI texts ask you to perform a statistical test to determine if conditional heteroskedasticity (love that word) is present. so nxR2 is all given nice and neat to you, .006x750 = 4.5 what the q doesn’t tell you is at what significance level we should be testing unless i’m missing something. normally we test 5% and the answer tests 5%, so no biggie- just might be something if you haven’t gotten there yet to jot next to the problem on pg 348- test at a 5% significance level b/c if I randomly tested at the 10% level then heteroskedasticity wouldn’t be a problemo and my answer would be different. let’s see if i can’t finish 13-16 now before kickoff. durrrrrbin wattttsoonnnnn
Always use 5% unless someone tells you otherwise…
220…221…whatever it takes.