Question

How does robust regression remove heteroscedasticity?

Answer 1

To address the residuals heteroscedasticity I have tried to apply a log transformation on the dependent variable as log(Y+1)log⁡(Y+1) but I still see the same fan out effect on the residuals. The DV values are relatively small so the +1 constant addition before taking the log is probably not appropriate in this case.

Answer 2

Answer:

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• To address the residuals heteroscedasticity I have tried to apply a log transformation on the dependent variable as log(Y+1)log⁡(Y+1) but I still see the same fan out effect on the residuals. The DV values are relatively small so the +1 constant addition before taking the log is probably not appropriate in this case.