What is heteroscedasticity in the context of residual analysis?
- It is the assumption that residuals have constant variance
- It is the condition where residuals have varying variance
- It is the linear relationship between residuals and the dependent variable
- It refers to the independence of residuals
Heteroscedasticity refers to a situation where the variance of the errors or the residuals is not constant across all levels of the independent variables. This violates one of the assumptions of linear regression and can result in inefficient estimates of the regression coefficients.
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