Homoscedasticity: Constant Variance of a Random Variable (2020)

The term “Homoscedasticity” is the assumption about the random variable $u$ (error term) that its probability distribution remains the same for all observations of $X$ and in particular that the variance of each $u$ is the same for all values of the explanatory variables, i.e the variance of errors is …

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Remedial Measures of Heteroscedasticity (2018)

The post is about Remedial Measures of Heteroscedasticity. Heteroscedasticity is a condition in which the variance of the residual term, or error term, in a regression model, varies widely. The heteroscedasticity does not destroy the unbiasedness and consistency properties of the OLS estimator (as OLS estimators remain unbiased and consistent …

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