In a multiple regression model,the probability distribution of the error variable ε is assumed to be:
A)normal.
B)non-normal.
C)positively skewed.
D)negatively skewed.

Question

Quizplus · Accepted Answer

In a multiple regression model, the error variable ε is assumed to follow a normal distribution. This assumption is necessary for conducting hypothesis testing and generating confidence intervals for the regression coefficients. If the error variable deviates from a normal distribution, it may impact the accuracy and validity of the regression results. Therefore, it is important to check the normality assumption using diagnostic plots such as normal probability plots or histograms of the residuals.

In a Multiple Regression Model,the Probability Distribution of the Error