In a multiple regression model, the mean of the probability distribution of the error variable $\varepsilon$ is assumed to be:
A) 1.0.
B) 0.0.
C) any value greater than 1.
D) k, where k is the number of independent variables included in the model.

Question

Quizplus · Accepted Answer

In a multiple regression model, the mean of the probability distribution of the error variable ε is assumed to be 0.0. This means that, on average, the errors cancel each other out and there is no systematic bias in the model.

In a Multiple Regression Model, the Mean of the Probability ε\varepsilonε

In a Multiple Regression Model, the Mean of the Probability $\varepsilon$