What is heteroscedasticity? Multiple Choice When the scatter plot of residuals falls in a vertical band

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What is heteroscedasticity?

Multiple Choice

• When the scatter plot of residuals falls in a vertical band.
• When the standard errors of the regression coefficients may be underestimated causing the calculated t-ratios to be larger than they should be.
• When the scatter plot of residuals falls in a horizontal band.
• When the error terms in the population regression have a constant variance across all values of the independent variable.