Unconditional and Conditional Heteroscedasticity

• Unconditional heteroskedasticity is when heteroskedasticity is not related with value of the independent variable
• Conditional heteroskedasticity is when it is related with a level of independent variable

Effects of Heteroscedasticity

• Regression coefficients are not affected
• Standard errors are usually unreliable
• Hypothesis testing of regression coefficient becomes insignificant