Homoskedastic Mean?
A statistics term indicating that the variance of the errors over the sample are similar. This type of error structure is most often assumed in statistics, but is not always the case when regression is done. If the variance of the errors around the line of best fit varies much, it will not show a pattern or
Menu
Homoskedastic Mean?
Replies (1)
Homoskedastic is an adjective describing a statistical model in which the errors are drawn from the same distribution for all values of the independent variables.
This is a strong assumption, and includes in particular the assumption in a linear regression, for example,
y = Xb + e
that the variance of the e's is the same for all X's.
The observed variance will differ in almost any sample. But if one believes that the data-generating process does not in principle have greater variances for different values of the independent variable, one would describe the sample as homoskedastic anyway.
Recent Topics :
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
- Sell of CAFC books
- ITC ON RENT
- GSTR-9 Table 8A Portal and Excel Issues
- IGST on Commercial Rental Income (Different State)
- Revocation of suo moto cancelled GST registration
- Is there any faculty taking chapterwise test in CA
- Late Fees and Interest
Related Topics :
CAclubindia
