Suppose u_t is the error term for time period 't' in a time series regression model the explanatory variables are x_t = (x_t₁, x_t₂ …., x_tk). The assumption that the errors are contemporaneously homoskedastic implies that: A)Var(u_t|x_t) = . B)Var(u_t|xt) = . C) Var(u_t|xt) = ². D) Var(u_t|x_t) = .

Question

Quizplus · Accepted Answer

If u_t is the error term for time period 't' and x_t is a matrix consisting of all independent variables for time 't', the assumption of contemporaneously homoskedasticity implies that Var(u_t|x_t) = 11eab06d_2556_2e1c_beed_bfd583c53dd4_TB2133_11 ².

Suppose Ut Is the Error Term for Time Period 'T

Suppose U_t Is the Error Term for Time Period 'T