In the simple linear regression model, Y = + X + e,
A)the errors are assumed to be as likely to occur above the line as below the line.
B)the errors are assumed to be more likely to occur above the line than below it.
C)the errors are assumed to be more likely to occur below the line than above it.
D)it is assumed that the error is larger for larger values of X.

Question

In the simple linear regression model, Y =  +  X + e,
A)the errors are assumed to be as likely to occur above the line as below the line. 
B)the errors are assumed to be more likely to occur above the line than below it. 
C)the errors are assumed to be more likely to occur below the line than above it. 
D)it is assumed that the error is larger for larger values of X.

Quizplus · Accepted Answer

In simple linear regression, the errors are assumed to follow a normal distribution with mean zero and equal variance. Therefore, the errors are equally likely to occur above or below the line.

In the Simple Linear Regression Model, Y =