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The Least Squares Method Requires That the Variance of the Error

Question 38

Multiple Choice

The least squares method requires that the variance  The least squares method requires that the variance   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)  heteroscedasticity. B)  homoscedasticity. C)  influential observation. D)  non-independence of  \varepsilon . of the error variable ε\varepsilon is a constant no matter what the value of x is. When this requirement is violated, the condition is called:


A) heteroscedasticity.
B) homoscedasticity.
C) influential observation.
D) non-independence of ε\varepsilon .

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