Standard linear modeling approaches make potentially simplistic assumptions regarding the structure of categorical effects that may obfuscate more complex relationships governing data. For example, recent work focused on the two-way unreplicated layout has shown that hidden groupings among the levels of one categorical predictor frequently interact with the ungrouped factor. We extend the notion of a "latent grouping factor" to linear models in general. The proposed work allows researchers to determine whether an apparent grouping of the levels of a categorical predictor reveals a plausible hidden structure given the observed data. Specifically, we offer Bayesian model selection-based approaches to reveal latent groupbased heteroscedasticity, regression effects, and/or interactions. Failure to account for such structures can produce misleading conclusions. Since the presence of latent group structures is frequently unknown a priori to the researcher, we use fractional Bayes factor methods and mixture g-priors to overcome lack of prior information. additional problems; see Rencher and Schaalje (2008), Rao (1971), and Deegan (1976.Regarding the detection of heteroscedasticity, many analyses follow a two-stage approach. These include the methods proposed by Bartlett (1937), Levene (1960), Brown andForsythe (1974), andHartley (1950). When heteroscedasticity is believed to be a function of a continuous predictor, many methods are available, including Breusch and Pagan (and Cribari-Neto and Zarkos (1999). Many methods exist to detect heteroscedasticity or conduct inference in its presence. To our knowledge, ours is the first proposal of latent group-based heteroscedasticity alongside possibly unique regression effects and/or hidden interactions.While an extension to more than two groups is natural, our choice of two groups is still a reasonable approach in many problems; Kharrati-Kopaei and Sadooghi-Alvandi (2007) and Franck (2018) study factor level groupings based on two groups in unreplicated two-way layouts, while Goldfeld and Quandt (1965) model heteroscedasticity as a function of two groups, where groups are created by partitioning observations ordinally.The main contribution of this work is to propose a method of probabilistically detecting the presence of hidden categorical level groupings, and to describe the model specifications that capture the effect of such groupings, through the use of Bayesian model selection. This work generalizes the