Unconditional heteroskedasticity occurs when the heteroskedasticity in the error variance is ______ with the values of the ______ variables in the regression.

A. correlated, independent.
B. not correlated, dependent.
C. not correlated, independent.

Correct Answer: C

Although unconditional heteroskedasticity violates an assumption of linear regression, it does not often lead to erroneous statistical inferences.