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, it is assumed that the mean of the error term $\varepsilon$ is 0. This assumption ensures that the model is unbiased, meaning that the expected value of the dependent variable is equal to the true value when the independent variables are held constant.

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

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