# Conditional Heteroskedasticity (WEDC)

**What is it?**

Residual variance related to level of independent variables

**Effect?**

Coefficients are consistent. Standard errors are underestimated. Too many Type I errors.

**Detection?**

Breusch-Pagan chi-sqaure test = n x R^2

**Correction?**

Use White-corrected standard errors

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