The population R-squared is affected when heteroskedasticity is present in Var(u|x₁, …, x_k).

Name: The population R-squared is affected when heteroskedasticity is present in Var(u|x 1 , …, x k ).
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Quizplus · Accepted Answer

Heteroskedasticity affects the efficiency of the estimators and the standard errors, but it does not affect the population R-squared, which measures the proportion of variance in the dependent variable explained by the independent variables.

The Population R-Squared Is Affected When Heteroskedasticity Is Present in Var(u|x1

The Population R-Squared Is Affected When Heteroskedasticity Is Present in Var(u|x₁