Heteroscedasticity Occurs When

question 32

Multiple Choice

Heteroscedasticity occurs when

• A)there is a nonlinear relationship between the X and Y scores.
• B)the scores are spread out to the same degree at every X.
• C)the Y scores are spread out to the same degree at every X.
• D)the Y scores have a different degree of spread at different Xs.

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Definitions:

Long Run

A period in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Perfectly Inelastic

A situation where demand does not change at all in response to changes in price.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a certain price over a specified period.

Price Effect

The impact on consumer demand and company revenue as the cost of a good or service changes.