If the residuals of a regression model, Y_i= B + MX_i + E_i, are such that their variances vary across all values of X, then they are said to be: A) heteroscedastic. B) homoscedastic. C) exogenous. D) endogenous.

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Quizplus · Accepted Answer

Heteroscedastic residuals have varying variances across all values of X, while homoscedastic residuals have constant variances across all values of X. Exogenous and endogenous refer to variables in a different context and are not relevant to the description of residuals.

If the Residuals of a Regression Model, Yi = B

If the Residuals of a Regression Model, Y_i= B