heteroskedasticity

[abbyzah]

can anyone tell me is this a plot of heteroskedasticity or homoskedasticity.

 

[Dason]

It's worse

 

[hlsmith]

Categorical variables?

 

[Dason]

Not necessarily categorical - but the response is definitely discrete.

 

[noetsi]

What is the variable in question, how is it measured?

 

[abbyzah]

The dependent variable is Credit Rating and independent in Inventory ELi, size, leverage n capint control variable subord n loss dummy

 

[abbyzah]

Categorical variables?

Dependent variable is Credit Rating n is a categorical variable.

 

[GretaGarbo]

Maybe it is better to run an ordinal multinomial logit model.

 

[noetsi]

I think that homoscedasticity is not assumed in a logistic regression. Well I am pretty certain of it

 

[GretaGarbo]

I think that homoscedasticity is not assumed in a logistic regression. Well I am pretty certain of it

Yes, but I believe that that the poster estimated with OLS, assuming constant variance, and wanted to check the assumption. I tried to suggest an other model.

 

[noetsi]

Yes, but I believe that that the poster estimated with OLS, assuming constant variance, and wanted to check the assumption. I tried to suggest an other model.

I understand, and actually agree with your suggestion (if his DV is not interval).