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

Question 50

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Which of the following is not a required condition for the error variable ε\varepsilon in the simple linear regression model?  A. The probability distribution of ε is normal.  B. The mean of the probability distribution of ε is zero.  C. The standard deviation σε of ε is a constant, no matter what the value of x D. The values of ε are auto correlated. \begin{array}{|l|l|}\hline\text { A. } & \text {The probability distribution of \( \varepsilon \) is normal. }\\\hline \text { B. } & \text {The mean of the probability distribution of \( \varepsilon \) is zero. } \\\hline \text { C. } &\text {The standard deviation \( \sigma_{\varepsilon} \) of \( \varepsilon \) is a constant, no matter what the value of \( x \). }\\\hline \text { D. } &\text {The values of \( \varepsilon \) are auto correlated. }\\\hline\end{array}

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