In regression analysis, which of the following is NOT a required assumption about the error term ε?
A) The expected value of the error term is 0.
B) The variance of the error term is the same for all values of x.
C) The values of the error term are independent.
D) All are required assumptions about the error term.

Question

Quizplus · Accepted Answer

All three assumptions (A, B, and C) are required assumptions about the error term in regression analysis. The expected value of the error term should be 0 for the model's predictive power to work properly. The variance of the error term should be constant for all values of x, and the values of the error term should be independently distributed. Therefore, D is the correct answer.

In Regression Analysis, Which of the Following Is NOT a Required