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In Simple Linear Regression Model Y=β0+β1x+εY = \beta _ { 0 } + \beta _ { 1 } x + \varepsilon

Question 43

Multiple Choice

In simple linear regression model Y=β0+β1x+εY = \beta _ { 0 } + \beta _ { 1 } x + \varepsilon which of the following statements are not required assumptions about the random error term ε \varepsilon
?


A) The expected value of ε \varepsilon

Is zero.
B) The variance of ε \varepsilon

Is the same for all values of the independent variable x.
C) The error term is normally distributed.
D) The values of the error term are independent of one another.
E) All of the above are required assumptions about ε \varepsilon

)

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