In a multiple regression model,the error variable ε is assumed to have a mean of:
A)−1.0
B)0.0
C)1.0
D)None of these choices.

Question

Quizplus · Accepted Answer

The error variable ε is assumed to have a mean of zero (0.0) in a multiple regression model. This means that on average, the errors are evenly distributed above and below the regression line. If the mean of the error variable is not zero, there may be a bias in the model and the predictions may not be accurate. Therefore, option B is the correct answer.

In a Multiple Regression Model,the Error Variable ε Is Assumed