Question: The following results are from data where the dependent variable is the selling price of used cars, the independent variables are similar to those in the above regression along with some additional variables. The data were split into 2 samples and the following regression results were obtained from the split data.

a) What is heteroskedasticity? (5)

b) Based on a comparison of the two sets of output, does it appear that there is heteroskedasticity in the data set? Explain. Be sure to write down your null and alternative hypothesis, calculate the test statistic, and find your critical value (test at the 1% level of significance). (15)