The Least Squares Method Requires That the Variance $\sigma _ { z } ^ { 2 }$

question 38

Multiple Choice

The least squares method requires that the variance $\sigma _ { z } ^ { 2 }$ of the error variable $\varepsilon$ is a constant no matter what the value of x is.When this requirement is violated,the condition is called:

• A) heteroscedasticity.
• B) homoscedasticity.
• C) influential observation.
• D) non-independence of \(\varepsilon\).

---

Definitions:

Salaries

Fixed regular payments, typically on a monthly or biweekly basis, made by an employer to an employee.

Socioeconomic Status

An evaluation of a person's or household's place within societal and economic hierarchies, determined by their income, educational background, and job.

Recent Research

Studies, experiments, or analyses that have been conducted in the near past, contributing to the current knowledge in a field.

Gender

Socially constructed roles, behaviors, expressions, and identities of girls, women, boys, men, and gender diverse people.