How to resolve heteroscedasticity in Multiple Linear Regression in R

Question

I'm modelling multiple linear regression. I used the bptest function to test for heteroscedasticity. The result was significant at less than 0.05.

How can I resolve the issue of heteroscedasticity?

Answer 1

Try to use a different form of linear regression to see what happens. You can try:

Use Ordinary Least Squares to determine homoscedasticity (OLS)

Use Weighted Least Squares for heteroscedasticity without correlated errors (WLS)

Use Generalized Least Squares for heteroscedasticity with correlated errors (GLS)