Consider the Following Regression Model: Y_i=β₀+β₁ X_i+u_i

question 17

Multiple Choice

Consider the following regression model: y_i=β₀+β₁ x_i+u_i.If the first four Gauss-Markov assumptions hold true,and the error term contains heteroskedasticity,then _____.

• A)Var(u_i|x_i)=0
• B)Var(u_i|x_i)=1
• C)Var(u_i|x_i)= σ_i²
• D)Var(u_i|x_i)=σ