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1. Give a definition of heteroscedasticity.
2. For what reasons does heteroscedasticity arise? Explain these.
3. What are the consequences for the estimates in the face of the heteroskedasticity problem?
4. What happens if these estimators are used when there are Heteroskedasticity problems?

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  • 1. 1. Give a definition of heteroscedasticity. 2. For what reasons does heteroscedasticity arise? Explain these. 3. What are the consequences for the estimates in the face of the heteroskedasticity problem? 4. What happens if these estimators are used when there are Heteroskedasticity problems?