43 narrowed, as well as scattered both above and below the 0 on the Y
axis Heteroscedasticity it did not happen.
Some ways to detect the presence or absence of heteroscedasticity:
1 If there is a specific pattern, such that there are points that form
a regular pattern wavy, widened and then narrowed, it has been indicated heteroscedasticity.
2 If there is no clear pattern, and the points spread above and
below the 0 on the Y axis, then it does not happen heteroscedasticity.
2. Hypothesis Testing
The analysis tools are the simple and the multiple regression. Both are used in order to see the effects of income on government
expenditures. Simple regression is used to see the influence of each variable to the prediction of expenditures separately, whereas multiple
regression is used to see the influence of all these variables
simultaneously. a.
Multiple Regression
To test the hypothesis Ha, the method of analysis used is multiple regression, because it involves three independent variables
and one dependent variable. Regression equation model to test the hypothesis with the following formulation:
Yi = α + b1 DAU1i + b2 PAD2i + e
44
b. Test Coefficient of Determination R
2
According to Wihandaru S. P., coefficient of determination R2 test is used to measure proportion of dependent variable
variance which is explained by independent variable. Steel, R. G. D. and Torrie, J. H, 1960, had opinion regarding coefficient of
determination R2. Coefficient of determination R
2
, according to them, is used in the context of statistical models whose main purpose
is the prediction of future outcomes on the basis of other related information. R
2
is most often seen as a number between 0 and 1.0, used to describe how well a regression line fits a set of data.
An R
2
near 1.0 indicates that a regression line fits the data well, while an R
2
closer to 0 indicates a regression line does not fit the data very well. It is the proportion of variability in a data set that is
accounted for by the statistical model. c.
Simultaneous Significance Testing F- Test
Essentially, F- test has purpose to know whether among independent variables simultaneously have significant influence
toward dependent variable. Independent variables in this research are Original Local Government Revenue PAD and General Allocation
Fund DAU whereas dependent variable is Local Government Expenditure BD. So, F- test has a function to know the influence
Original Local Government Revenue PAD and General Allocation Fund DAU whereas dependent variable is Local Government
