Imagine that you’re estimating a model with the
natural log of Major League Baseball players’ contract value
as the dependent variable and several player characteristics as
independent variables. (See the preceding section for more
detail.) When you plug this information into STATA (which
lets you run a White test via a specialized command), the
program retains the predicted Y values, estimates the auxiliary
regression internally, and reports the chi-squared test. Figure
11-6 shows the resulting output, which suggests you should
reject the homoskedasticity hypothesis.