Skip to main content
edited tags
Link
kjetil b halvorsen
  • 82.8k
  • 32
  • 201
  • 663
Source Link
Rainroad
  • 287
  • 2
  • 10

Rationale for fitted vs residuals plot

Why does examining fitted vs residuals plot help us determine whether there is heteroskedasticity or not? Could someone give me a detailed theoretical rationale for this test? Does the randomness of residuals around the horizontal line y = 0 guarantee homoskedasticity, or does it just support the presence of it?