As per wikipedia:
"The term Caucasian race or Caucasian is used to refer to people whose ancestry can be traced back to Europe, North Africa, West Asia, South Asia and parts of Central Asia. It was once considered a useful taxonomical categorization of human racial groups based on a presumed common geographic and/or linguistic origin.
"In the United States, it is currently used primarily as a distinction loosely based on skin color alone for a group commonly referred to as Whites, as defined by the American government and Census Bureau. In Britain, "Caucasian" follows the North American definition, but in continental Europe, "Caucasian" currently refers exclusively to people who are from the Caucasus. However, it is rare and becoming increasingly politically incorrect in Britain to categorise people as Caucasian because of the vagueness of its definition.citation needed
Many South Asians in Britain could be categorised as Caucasian as well. For this reason 'White-European' is preferred for categorising white people as it is more specific.citation needed
"The term itself derives from measurements in craniology from the 19th century, and its name stems from the region of the Caucasus mountains, itself imagined to be the location from which Noah's son Japheth, traditional Biblical ancestor of the Europeans, established his tribe prior to its migration into Europe.
"Caucasoid is a term used in physical anthropology to refer to people falling within a certain range of anthropometric measurements.
"In New Zealand the term Caucasian is used most frequently in police offender descriptions. Pâkehâ, European New Zealander, or simply New Zealander (although in theory this should include all New Zealanders) is more common in general language".
*Jewish people are also caucasian, so the #9 definition is incorrect beginning in the first sentence alone.