An academic advisor wants to predict the typical starting salary of a graduate at a top business school using the GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT was created from a set of 25 data points.

Which of the following is not an assumption required for the simple linear regression analysis to be valid?

A) The errors of predicting SALARY are normally distributed.
B) The errors of predicting SALARY have a mean of 0.
C) The errors of predicting SALARY have a variance that is constant for any given value of GMAT.
D) SALARY is independent of GMAT.

Question

An academic advisor wants to predict the typical starting salary of a graduate at a top business school using the GMAT score of the school as a predictor variable. A simple linear regression of SALARY versus GMAT was created from a set of 25 data points.

Which of the following is not an assumption required for the simple linear regression analysis to be valid?

Which of the following is not an assumption required for the simple linear regression analysis to be valid?

A) The errors of predicting SALARY are normally distributed.
B) The errors of predicting SALARY have a mean of 0.
C) The errors of predicting SALARY have a variance that is constant for any given value of GMAT.
D) SALARY is independent of GMAT.

Quizplus · Accepted Answer

In simple linear regression, it is assumed that the dependent variable (SALARY) is linearly related to the independent variable (GMAT), not independent of it.

An Academic Advisor Wants to Predict the Typical Starting Salary