When the variance of the error variable ε 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 ε 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

Homoscedasticity is the condition where the variance of the error variable ε is constant for all values of x. Heteroscedasticity, on the other hand, is the situation where the variance of ε changes with x. Therefore, since the variance is constant regardless of x, the answer is homoscedasticity.

When the Variance of the Error Variable ε Is