Suppose U_t Is the Error Term for Time Period 'T

question 6

Multiple Choice

Suppose u_t is the error term for time period 't' in a time series regression model the explanatory variables are x_t = (x_t1, x_t2 …., x_tk) . The assumption that the errors are contemporaneously homoskedastic implies that:

• A)Var(u_t|x_t) = .
• B)Var(u_t|xt) = .
• C)Var(u_t|xt) = ².
• D)Var(u_t|x_t) = .

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