- CFA Exams
- CFA Level I Exam
- Study Session 2. Quantitative Methods (1)
- Reading 5. Multiple Regression
- Subject 10. Heteroskedasticity
CFA Practice Question
Unconditional heteroskedasticity occurs when the heteroskedasticity in the error variance is ______ with the values of the ______ variables in the regression.
B. not correlated, dependent.
C. not correlated, independent.
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.
User Contributed Comments 1
User | Comment |
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danlan2 | Definition of unconditional heteroskedasticity. |