Q7. Which of the one is true about Heteroskedasticity?

A. Linear Regression with varying error terms

B. Linear Regression with constant error terms

C. Linear Regression with zero error terms

D. None of these

Solution: A

The presence of non-constant variance in the error terms results in heteroskedasticity. Generally, non-constant variance arises because of presence of outliers or extreme leverage values.

You can refer this article for more detail about regression analysis.