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The error term is homoskedastic if var(u_i│X_i=x) is constant for i=1,2,…,n var(u_i│X_i=x) depends on x. X_i...

The error term is homoskedastic if
var(u_i│X_i=x) is constant for i=1,2,…,n
var(u_i│X_i=x) depends on x.
X_i is normally distributed
there are no outliers

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Answer #1

Hello

YOUR REQUIRED ANSWER IS OPTION A : var(u_i│X_i=x) is constant for i=1,2,…,n

Homoskedasticity refers to the situation in which the vaiance of the residual term is constant, i.e. doen not change much with the change in predictor variable.

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