Stabilizing heteroscedasticity for butterfly-distributed residuals by the weighting absolute centered external variable

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Celik R.

JOURNAL OF APPLIED STATISTICS, vol.42, pp.705-721, 2015 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 42
  • Publication Date: 2015
  • Doi Number: 10.1080/02664763.2014.980791
  • Journal Name: JOURNAL OF APPLIED STATISTICS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.705-721
  • Keywords: 62J05, 62J20, centered external variable, common heteroscedasticity stabilizing methods, heteroscedasticity, weighting by external variable, butterfly-distributed residuals, ROBUST REGRESSION, MODELS, TRANSFORMATIONS
  • Yıldız Technical University Affiliated: Yes

Abstract

In the current study, a new method by the weighting absolute centered external variable (WCEV) was proposed to stabilize heteroscedasticity for butterfly-distributed residuals (BDRs). After giving brief information about heteroscedasticity and BDRs, WCEV was introduced. The WCEV and commonly used variance stabilizing methods are compared on a simple and a multiple regression model. The WCEV was also tested for other type of heteroscedasticity patterns. In addition to heteroscedasticity, other regression assumptions were checked for the WCEV.