Which of the following statements regarding linear regression is false? A. H

Which of the following statements regarding linear regression is false?

A. Heteroskedasticity occurs when the variance of residuals is not the sameacross all observations in the sample.

B. Unconditional heteroskedasticity leads to inefficient estimates whereas conditional heteroskedasticity can lead to problems with both inferenceand
estimation.

C. Serial correlation occurs when the residual terms are correlated witheach other.

D. Multicollinearity occurs when a high correlation exists between oramong two or more of the independent variables in a multiple regression.