Match the description with the appropriate term.
-A constant variance of the residuals.
A) specification analysis
B) standard error of the regression
C) Durbin-Watson statistic
D) t-value
E) heteroscedasticity
F) autocorrerlation
G) homoskedasticity
H) goodness of fit
I) economic plausibility
J) constant variance of residuals

Question

Quizplus · Accepted Answer

Homoskedasticity refers to the situation in econometrics and statistics where the variance of the error terms (or residuals) is constant across all levels of the independent variable(s). This is the opposite of heteroskedasticity, where the variance of the residuals varies.

Match the Description with the Appropriate Term