we have heteroskedasticity in a regression when: When the variance of error terms changes when an...
we have heteroskedasticity in a regression when:
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When the variance of error terms changes when an independent variable become larger. |
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The consequent error terms of the regression are correlated with each other. |
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When two or more independent variables are correlated with each other. |
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When the regression error terms are correlated with and independent variable. |
Homework Answers
The answer is:
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When the variance of error terms changes when an independent variable become larger. |
Heteroscedasticity means unequal scatter which occurs when the variance of error terms changes when an independent variable becomes larger. We basically expect to see larger residuals associated with higher values.
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