The variance of the error variable is required to be constant.When this requirement is violated,the condition is called heteroscedasticity.

Question

The variance of the error variable  is required to be constant.When this requirement is violated,the condition is called heteroscedasticity.

Quizplus · Accepted Answer

Heteroscedasticity refers to a situation where the variance of the error term is not constant. Therefore, if the variance of the error variable is required to be constant and is not, then the condition is called heteroscedasticity.

The Variance of the Error Variable Is Required to Be