# How do you detect Conditional Heteroskedasticity?

**Method 1: **Use a diagram

**Method 2:** Use the Breusch-Pagan test

Null Hypothesis = No Conditional Heteroskedasticity

Alternate Hypothesis = Conditional Heteroskedasticity

Test Statistic = n * R^2

Use critical value from chi-square distribution with degrees of freedom = k (# of Independent Variables)

If test statistic > critical value then there is Conditional Heteroskedasticity

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