In a multiple regression model, the error term ε is assumed to
A) have a mean of 1
B) have a variance of zero
C) have a standard deviation of 1
D) be normally distributed

Question

Quizplus · Accepted Answer

In a multiple regression model, the error term ε is assumed to be normally distributed. The mean and variance of the error term can be any value and are not assumed to be 1 and 0, respectively. The standard deviation of the error term can also be any value and is not necessarily 1.

In a Multiple Regression Model, the Error Term ε Is