A normally distributed error term with mean of zero would:
A) have values that are symmetric about the variance.
B) allow more accurate modelling.
C) yield biased regression estimates.
D) be a hyperbolic curve.

Question

Quizplus · Accepted Answer

The practical implication of normally distributed errors with a mean of zero and a constant variation for any given combination of values of x₁, x₂, . . . , xq is that the regression estimates are unbiased, possess consistent accuracy, and tend to err in small amounts rather than in large amounts.

A Normally Distributed Error Term with Mean of Zero Would