The error term ε_i in the population regression model y_i = β₀ + β₁ x_i + ε_i is assumed to be: A)observable. B)autocorrelated. C)heteroscedastic. D)normally distributed.

Question

Quizplus · Accepted Answer

The error term ε_i is assumed to be normally distributed, as it is a common assumption in regression analysis. There is no indication of observability, autocorrelation, or heteroscedasticity in the question stem.

The Error Term εi in the Population Regression Model Yi

The Error Term ε_i in the Population Regression Model Y_i