In regression analysis, the error term ε is a random variable with a mean or expected value of
A) 0.
B) 1.
C) μ.
D) .

Question

In regression analysis, the error term ε is a random variable with a mean or expected value of
A) 0. 
B) 1. 
C) μ. 
D) .

Quizplus · Accepted Answer

The error term ε is a measure of the variability or randomness in the relationship between the independent variable(s) and the dependent variable. It is assumed to have a mean or expected value of 0 in regression analysis, meaning that on average, the errors will be evenly distributed around zero.

In Regression Analysis, the Error Term ε Is a Random