Which statement is not correct?
A) Spurious correlation can often be reduced by expressing X and Y in per capita terms.
B) Autocorrelation is mainly a concern if we are using time-series data.
C) Heteroscedastic residuals will have roughly the same variance for any value of X.
D) Standardized residuals make it easy to identify outliers or instances of poor fit.

Question

Quizplus · Accepted Answer

Heteroscedastic residuals do not have the same variance for any value of X. Instead, the variance of the residuals changes depending on the value of X. This can be problematic because it violates the assumption of homoscedasticity, which assumes that the variance of the residuals is constant for all values of X.

Which Statement Is Not Correct