Differences between revisions 3 and 9 (spanning 6 versions)
Revision 3 as of 2024-06-07 14:39:03
Size: 801
Comment: Rewrite 2
Revision 9 as of 2025-05-17 03:48:58
Size: 0
Comment:
Deletions are marked like this. Additions are marked like this.
Line 1: Line 1:
= Homoskedasticity =

'''Homoskedasticity''' means that the variance of the error term is constant and not correlated to any treatment or control variable.

<<TableOfContents>>

----



== Meaning ==

Mathematically, homoskedasticity and [[Econometrics/Exogeneity|exogeneity]] together can be expressed as:

{{attachment:exo.svg}}

The full set of variables is independently and normally distributed about 0. The covariance matrix is fully expressed as the [[LinearAlgebra/SpecialMatrices#Diagonal_Matrices|diagonal matrix]] of each term's variance.

The opposite condition is '''heteroscedasticity'''.

It can also be useful to express exogeneity as a [[Statistics/ConditionalExpectations|conditional expectation]] like:

{{attachment:cond.svg}}



----
CategoryRicottone