CFA Practice Question

There are 208 practice questions for this study session.

CFA Practice Question

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.

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danlan2 Definition of unconditional heteroskedasticity.
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