Question #30
Reading: Reading 1 Multiple Regression
PDF File: Reading 1 Multiple Regression.pdf
Page: 13
Status: Unattempted
Correct Answer: B
Question
One of the main assumptions of a multiple regression model is that the variance of the residuals is constant across all observations in the sample. A violation of the assumption is most likely to be described as:
Answer Choices:
A. positive serial correlation
B. heteroskedasticity
C. unstable remnant deviation
Explanation
Heteroskedasticity is present when the variance of the residuals is not the same across all
observations in the sample, and there are sub-samples that are more spread out than the
rest of the sample.