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Suppose Ut Is the Error Term for Time Period 'T

Question 8

Multiple Choice

Suppose ut is the error term for time period 't' in a time series regression model the explanatory variables are xt = (xt1,xt2 …. ,xtk) .The assumption that the errors are contemporaneously homoskedastic implies that:


A) Var(ut|xt) = √σ.
B) Var(ut|xt) = ∞.
C) Var(ut|xt) = σ2.
D) Var(ut|xt) = σ.

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