The Least Squares Method Requires That the Variance $$\sigma _ { \varepsilon } ^ { 2 }$$

Multiple Choice

The least squares method requires that the variance $$\sigma _ { \varepsilon } ^ { 2 }$$ of the error variable ${ \varepsilon }$ is a constant no matter what the value of x is. When this requirement is violated, the condition is called:

A) multicollinearity.
B) heteroscedasticity.
C) homoscedasticity.
D) autocorrelation.