The least squares method requires that the variance of the error variable e 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 e .

Question

The least squares method requires that the variance  of the error variable e 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 e .

Quizplus · Accepted Answer

The Answer of The least squares method requires that the variance  of the error variable e 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 e .

The Least Squares Method Requires That the Variance of the Error