The Least Squares Method Requires That the Variance of the Error

question 261

Multiple Choice

The least squares method requires that the variance of the error variable ε 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 ε.

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