Which assumption is not necessary for the following equation to correctly characterize the standard error of $\beta$1hat?
A) Errors are homoscedastic.
B) Errors are not correlated with each other.
C) Errors are heteroscedastic.
D) The independent variable varies.

Question

Quizplus · Accepted Answer

The assumption of homoscedasticity and lack of correlation among errors are necessary for correctly characterizing the standard error of F1F1F1S1F1F1F101hat. However, assuming heteroscedasticity is not necessary for this equation to be valid. The independent variable varying is a fundamental requirement for running linear regression and is not specifically related to the standard error calculation.

Which Assumption Is Not Necessary for the Following Equation to Correctly