An additional assumption made when discussing the correlation model that was not made in the regression model is A) the observations come from a bivariate normal distribution. B) the variance of the error term is dependent on the values of the predictor variable. C) the variance of the disturbance term is constant. D) the values of the error term are dependent on each other. E) the X_i are fixed.

Question

Quizplus · Accepted Answer

The correlation model assumes that the observations come from a bivariate normal distribution, which is not an assumption made in the basic regression model.

An Additional Assumption Made When Discussing the Correlation Model That