Question

1. What is heteroscedasticity?

1. What is the nature of heteroscedasticity
2. What is the difference between pure heteroscedasticity and impure heteroscedasticity
3. What are the consequences of heteroscedasticity

What are the remedial measures if heteroscedasticity in a problem?

Answer 1

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re v eesus Impure Hetero scedasticity we civide hetemoscedasticity inm two general pes Whore you, speci玄y the comect nandet a/Va yet ou obs esve non-comstant variance in the residual plets. Umpuoe Heter scedashicity Ca s specidy the model, amd twhese you incorrectl that causes the nom- constant variance. When you leave anom portant vaaiable outota. model, the ornited ei ect as ab sorted Int 。 * Consequen ces叶Hetero sceclash.city_ Heteso scedastic dauta cam give you a vasiety OLS will not gie you the estimater with the smallest vasion ce. → Slomiticance tests wil Yun either too high too low. → stondood uoT7TS win be biased, along with their co-ovesponding test stoch'sties.