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Questions › UGC-NET › UGC-NET 2025 › Q25
2 marksEconometrics › Classical assumptions and their violations › HeteroscedasticityModerateabout 1 min

UGC-NET 2025 Question 25: Classical assumptions and their violations

Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).

Assertion (A): The presence of heteroscedasticity in regression analysis implies that the least square estimators are still unbiased but inefficient.

Reason (R): The estimates of the variances are also unbiased.

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Classical assumptions and their violations has come up 26 times in 7 exams since 2011.

What this question tests

This question is on Heteroscedasticity, part of Classical assumptions and their violations in Econometrics.

Unequal error variance: causes, consequences for OLS, tests and remedies.

TestStop has 10 past-paper questions on this subtopic; the nearest in year are below.

  • GATE 2021 · Q9What would be the consequences for the OLS estimator if heteroscedasticity is present in a regression model…
Take this paper as a timed mockMore on Heteroscedasticity

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Question from the UGC-NET 2025 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.