Heteroscedasticity Occurs When

question 45

Multiple Choice

Heteroscedasticity occurs when:

• A) the variance of the random error is non-constant over the sample.
• B) the regression coefficient estimates are highly unstable.
• C) the random errors are correlated over time.
• D) two or more explanatory variables are highly correlated.
• E) the dependent and the explanatory variables are highly uncorrelated.

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Definitions:

Analyzing

The process of examining components or data closely to understand their relationship, structure, or meaning.

Context

The circumstances or background that provides understanding and relevance to a specific event, statement, or idea.

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The act of presenting the main points or essence of a text or speech in a concise form.

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