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Commerce · Q388

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Graduate and Post Graduate · Commerce · question 388

Q388

In assumptions testing, violation of constant variance is called

A.
heteroscedasticity
Answer
B.
heterogeneous
C.
homogenous
D.
homoscedasticity

Answer: Option A

Solution

Answer: Option A
Solution:
In assumptions testing, violation of constant variance is called heteroscedasticity. Heteroscedasticity means unequal scatter. In regression analysis, we talk about heteroscedasticity in the context of the residuals or error term. Specifically, heteroscedasticity is a systematic change in the spread of the residuals over the range of measured values.