All of the following are true of the error term in a regression equation except which one?
A)It's distribution is assumed to be bell- shaped.
B)It is random.
C)It is assumed to be normally distributed.
D)It is constant.

Question

Quizplus · Accepted Answer

The error term is not necessarily constant, as it can vary in magnitude depending on the values of the independent variables. However, it is assumed to be random, normally distributed, and have a bell-shaped distribution.

All of the Following Are True of the Error Term