When the variance, $\sigma _ { \varepsilon } ^ { 2 }$ , of the error variable $\varepsilon$ is a constant no matter what the value of x is, this condition is called:
A)homocausality.
B)heteroscedasticity.
C)homoscedasticity.
D)heterocausality.

Question

Quizplus · Accepted Answer

Homoscedasticity refers to the condition in which the variance of the error term ($\sigma _ { \varepsilon } ^ { 2 }$) is constant across all levels of the independent variable (x). This is a key assumption in linear regression models.

When the Variance σε2\sigma _ { \varepsilon } ^ { 2 }σε2​

When the Variance $\sigma _ { \varepsilon } ^ { 2 }$