Heteroscedasticity occurs when?
A)Variability in Y depends on the exact value of X.
B)More error is accounted for than remains.
C)There is a linear relationship between X and Y.
D)There are larger values on X than Y.

Question

Quizplus · Accepted Answer

Heteroscedasticity refers to the condition in which the variability of a variable is unequal across the range of values of a second variable that predicts it. In simpler terms, it means the spread of the residuals or errors varies with the values of the independent variable X. This is why option A is correct, as it directly describes this phenomenon.

Heteroscedasticity Occurs When