A normally distributed error term with a mean of zero would
A)have values that are symmetric about the variance.
B)allow more accurate modeling.
C)yield biased regression estimates.
D)be a hyperbolic curve.

Question

Quizplus · Accepted Answer

A normally distributed error term with a mean of zero is a standard assumption in linear regression models, allowing for more accurate modeling by ensuring that the errors do not systematically over- or under-predict the dependent variable.

A Normally Distributed Error Term with a Mean of Zero