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The Goldfeld-Quandt (GQ) test in econometrics begins by assuming that a defining point exists and can be used to differentiate the variance of the error term. Sample observations are divided into two groups, and evidence of heteroskedasticity is based on a comparison of the residual sum of squares (RSS) using the F-statistic. The null hypothesis for the GQ test is homoskedasticity. The larger the F-statistic, the more evidence you’ll have against the homoskedasticity assumption and the more likely you have heteroskedasticity (different variance for the two groups).
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