thinQmaster Virtual testing partner Adaptive practice exams that find your weak spots and drill them. Every answer explained. From $69
Enroll

thinQmaster

Find your exam

Five questions free, before you decide.

Step 1 · choose a vendor

In one of our camps? Your practice exams come with the tuition — they are on your study page already.

Data & Analytics · Advanced

Heteroscedasticity

Non-constant variance of regression residuals across the range of predicted values.

Definition

Heteroscedasticity makes standard errors unreliable. It is seen as a funnel shape in residual plots and addressed with transformations (such as log), weighted least squares or robust standard errors.

Exam tip

Funnel-shaped residuals = heteroscedasticity.

Related terms