Departlnent of Eco110111ics, Patna University, Patna

Name of the Programme: MA Economics (Sem. IV)

Name of the Course: EC- I Group C: Basic Econometrics

Module 4: Problems of Single Equadon Model

Name of the Topic: Heteroscedasticitv

By

Dr. Benoy Kumar Lal Associate Professor

Department of Economics, Patna University, Patna Email ID: benoykumar/al@yaltoo.in

Mobile No. I W/,atsApp No. 9608570960/ 985205900/

H eteroscedasticity

As we know that the Regression Model is based on some assumptions about the disturbance term. These are:

1. Normality: The first assumption of the Regression Model is that the disturbance term is normally distributed.

2. Zero Mean: The second assumption of the Regression Model is that the disturbance term/ error term has zero mean. i. e.

E (u?) = 0 where, i == I, 2. 3 ................ n.

3. Homoscedasticity: It assumes that the errors are distributed independently with Zero Mean and constant variance a/, that is

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