Q2 (a)State in algebraic notation and explain the assumption about the classical linear regression models disturbances that are referred to by the term ‘homoscedasticity’. (b)What would the...

Q2

(a)State in algebraic notation and explain the assumption about the classical linear regression models disturbances that are referred to by the term ‘homoscedasticity’.

(b)What would the consequence be for a regression model if theerrors were not homoscedastic?

(c) How might you proceed if you found that (b) were actually the case?

(d) What do you understand by the term ‘autocorrelation’?