In a multiple regression model, the values of the error term ε are assumed to be
A) zero.
B) dependent on each other.
C) independent of each other.
D) always negative.

Question

Quizplus · Accepted Answer

In a multiple regression model, the errors are assumed to be independent of each other, meaning that the value of an error term for a particular observation or data point is not dependent on the value of error terms for other observations. Additionally, error terms can be positive or negative and their values do not have to sum to zero, so choice A and D are incorrect. Finally, the correlation between error terms is not assumed, so choice B is also incorrect.

In a Multiple Regression Model, the Values of the Error