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Chartered Financial Analyst Level 2

Chartered Financial Analyst Level 2

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A Breusch–Pagan (BP) test is run on the residuals from two regression models to detect heteroskedasticity, with the following results:

BP Test StatisticP-Value
Model 15.458
Model 20.046

If the level of significance is 5%, which of the following is the most appropriate conclusion that can be drawn?

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