In regression analysis, which of the following is NOT a required assumption about the error term $\varepsilon$?
A)expected value of the error term is zero
B)variance of the error term is the same for all values of x
C)values of the error term are positive
D)error term is normally distributed
E)all of the above

Question

Quizplus · Accepted Answer

The assumption that values of the error term are positive is not required in regression analysis. Error terms can be positive, negative, or zero, as they represent the difference between the observed and predicted values.

In Regression Analysis, Which of the Following Is NOT a Required