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Sonbull [250]
4 years ago
6

(2 points) The least squares method requires that the variance σ2????σϵ2 of the error variable ????ϵ is a constant no matter wha

t the value of x is. When this requirement is violated, the condition is called: A. homoscedasticity B. non-independence of ????ϵ C. heteroscedasticity D. influential observation In regression analysis, the coefficient of determination R2R2 measures the amount of variation in y that is: A. caused by variation in x B. unexplained by variation in x C. explained by variation in x D. both A and B are correct answers Help Entering Answers
Mathematics
1 answer:
attashe74 [19]4 years ago
6 0

Answer:

C. heteroscedasticity

Step-by-step explanation:

The  OLS regression assumption of error variance being constant irrespective of independent variables, is called Homoscedasticity.

Var (u | x) = σ^2 (u) ;

where u = error term, x = independent variable, σ^2 (u) = constant error variance

The violance of this assumption ie Var (u | x) is related to independent variable x, is called Heteroscedasticity.

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