Heteroscedasticity of residuals occurs in a regression model with dependent vari
ID: 3227245 • Letter: H
Question
Heteroscedasticity of residuals occurs in a regression model with dependent variable Y and independent variable X when
there are larger values on X than Y.
there is a linear relationship between X and Y.
more error is accounted for than what remains.
variability in Y is unequal across the range of values of X.
a.there are larger values on X than Y.
b.there is a linear relationship between X and Y.
c.more error is accounted for than what remains.
d.variability in Y is unequal across the range of values of X.
Explanation / Answer
The answer is d i.e. Variability in Y is unequal across the range of values of X.
Explanation:
Heteroscedastcity refers to the unequal distribution of error terms or we can say when residuals of variables in regression model are not constant. Above answer has been selected because if variability between two variables are not equal or if there is large disparity among high and low values error terms become unconsistent and hence causes Heteroscedastcity