The Assumption of Homoscedasticity Means That ________

question 11

Multiple Choice

The assumption of homoscedasticity means that ________.

• A)variation about the regression line is constant for all values of the independent variable
• B)the residuals should appear to be randomly scattered about zero,with no apparent pattern
• C)the errors for each individual value of X are normally distributed,with a mean of 0
• D)the residuals should be scattered in a parabolic shape about zero

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Definitions:

Future Cash Flows

are the estimated amounts of money expected to be received or paid out by a business over future periods as a result of its operational activities.

AASB 136

The Australian Accounting Standards Board standard concerning the impairment of assets, requiring entities to ensure that asset carrying values are not more than their recoverable amounts.

Value In Use

The current worth of the anticipated future cash flows from an asset or a unit that generates cash.

Future Cash Flows

Estimated monetary gains or losses that will be realized by an entity in the future.