Heteroskedasticity Means That

question 45

Multiple Choice

Heteroskedasticity means that

• A)homogeneity cannot be assumed automatically for the model.
• B)the variance of the error term is not constant.
• C)the observed units have different preferences.
• D)agents are not all rational.

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Definitions:

Problem Solving

The process of identifying a challenge, difficulty, or uncertainty and applying strategies or techniques to find solutions or overcome it.

Decision

The act or process of making a choice from a set of alternatives.

System I

A term often associated with fast, automatic, and intuitive thinking, as per dual-process theory in psychology.

System II

A cognitive unit or system in psychology that is responsible for deliberate, analytical, and effortful decision-making processes.