In a multiple regression model, the error term $\varepsilon$ is assumed to
A)have a mean of 1
B)have a variance of zero
C)have a standard deviation of 1
D)be normally distributed

Question

Quizplus · Accepted Answer

The error term in a multiple regression model is assumed to be normally distributed. Therefore, choice D is the correct answer. The other options are incorrect as the error term is not assumed to have a mean, variance or standard deviation of specific values.

In a Multiple Regression Model, the Error Term ε\varepsilonε Is Assumed to A)have a Mean of 1 B)have a Assumed

In a Multiple Regression Model, the Error Term $\varepsilon$ Is Assumed to
A)have a Mean of 1
B)have a Assumed