In multiple regression analysis, residuals (Y - Ŷ) should be
A) qualitative variables.
B) significantly different from zero.
C) correlated.
D) normally distributed with a mean of zero.

Question

Quizplus · Accepted Answer

Residuals should be normally distributed with a mean of zero in order for the regression analysis to be considered valid. Choice A is incorrect because residuals are quantitative, not qualitative. Choice B is incorrect because residuals being significantly different from zero would imply a lack of fit in the regression model. Choice C is incorrect because residuals should not be correlated with any of the independent variables.

In Multiple Regression Analysis, Residuals (Y - Ŷ) Should Be