In multiple regression models, the values of the error variable are assumed to be:
A) autocorrelated
B) dependent of each other
C) independent of each other
D) always positive
E) independent of each other and always positive

Question

In multiple regression models, the values of the error variable  are assumed to be:
A) autocorrelated 
B) dependent of each other 
C) independent of each other 
D) always positive 
E) independent of each other and always positive

Quizplus · Accepted Answer

In multiple regression models, the assumption is that the error variable values are independent of each other. This is because the regression model assumes that each observation is independent and identically distributed.

In Multiple Regression Models, the Values of the Error Variable