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Heteroscedasticity, in the context of regression, a. leads to more accurate estimates of the standard deviations...

Heteroscedasticity, in the context of regression,

a. leads to more accurate estimates of the standard deviations of the estimated parameters than when homoscedasticity is present.

b. occurs when the X variables are correlated with one another.

c. can be corrected by removing all X variables from the model.

d. occurs when the error terms, εi, do not have constant variance for all values of the predictor (or X) variables.

e. is an assumption of the Gauss-Markov theorem.
math   Statistics-And-Probability   
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Answer #1

Heteroscedasticity, in the context of regression -

ans-> d) occurs when the error terms, εi, do not have constant variance for all values of the predictor (or X) variables.

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