(a) State in algebraic notation and explain the assumption about the CLRMs disturbances that is referred to...
Question:
(a) State in algebraic notation and explain the assumption about the CLRM’s disturbances that is referred to by the term
‘homoscedasticity’.
(b) What would the consequence be for a regression model if the errors were not homoscedastic?
(c) How might you proceed if you found that
(b) were actually the case?
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