In a multiple regression model, the standard deviation of the error variable$\varepsilon$is assumed to be:
A)0.
B)1.0.
C)constant.
D)None of these choices.

Question

Quizplus · Accepted Answer

In multiple regression analysis, the standard deviation of the residual errors (or ε) is assumed to be constant, which means that the variance of the residuals is the same for all the values of the independent variables. This assumption is also known as Homoscedasticity. Therefore, the correct answer is C, constant.

In a Multiple Regression Model, the Standard Deviation of the Error