When the variance of the error variable is a constant no matter what the value of x is, this condition is called:
A) heterocausality.
B) homoscedasticity.
C) homocausality.
D) heteroscedasticity.

Question

When the variance  of the error variable  is a constant no matter what the value of x is, this condition is called:
A) heterocausality. 
B) homoscedasticity. 
C) homocausality. 
D) heteroscedasticity.

Quizplus · Accepted Answer

When the variance of the error term is constant across all values of x, it is known as homoscedasticity. Therefore, option B is the correct answer. The other options are incorrect as they do not describe this condition.

When the Variance of the Error Variable Is