In a simple linear regression model, the variance of the error term $\varepsilon$ is assumed to be
A)the same for all values of x
B)zero
C)increasing as x values increase
D)-1
E)none of the above

Question

Quizplus · Accepted Answer

The assumption of homoscedasticity in a simple linear regression model means that the variance of the error term is constant across all values of the independent variable x, which is described by choice A.

In a Simple Linear Regression Model, the Variance of the Error