In the regression of y on x, the error term exhibits heteroskedasticity if _____.
A. it has a constant variance
B. Var(y|x) is a function of x
C. x is a function of y
D. y is a function of x
Answer: B
You might also like to view...
To have significant foreign direct investment, a developing country ought to have a stable system of property rights
a. True b. False Indicate whether the statement is true or false
How do adherents of traditional business cycle theories differ from real business cycle theorists? List the difference between their views on the role of government
Econometrics is the use of statistics to _____ economic models
a. quantify and test b. try to disprove c. avoid the use of d. create e. simulate
The discount rate is the interest
A. rate at which the central banks lend to the United States Treasury. B. rate at which the Federal Reserve Banks lend to commercial banks and thrift institutions. C. yield on long-term government bonds. D. rate at which commercial banks and thrifts lend to the public.