Which of the following is not a required condition for the error variable $$\varepsilon$$ in the simple linear regression model?
A) The probability distribution of $$\varepsilon$$ is normal.
B) The mean of the probability distribution of $$\varepsilon$$ is zero.
C) The standard deviation $$\sigma _ { \varepsilon }$$ of $$\varepsilon$$ is a constant, no matter what the value of x.
D) The values of $$\varepsilon$$ are auto correlated.

Question

Quizplus · Accepted Answer

Autocorrelation in the error term violates one of the basic assumptions of the simple linear regression model. The other three conditions (normality, zero mean, constant standard deviation) are necessary for the validity of the model.

Which of the Following Is Not a Required Condition for the Error