i. A multiple regression equation defines the relationship between the dependent variable and the independent variables in the form of an equation. ii. Autocorrelation often happens when data has been collected over periods of time.
iii. Homoscedasticity occurs when the variance of the residuals (Y - Y') is different for different values of Y'.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

Statement (i) is correct as it defines the purpose of a multiple regression equation.

Statement (ii) is also correct as autocorrelation is a common issue with time-series data.

However, statement (iii) is not correct as homoscedasticity actually occurs when the variance of the residuals is the same for different values of Y', not different. Therefore, choice B is the best solution as it correctly identifies the correctness of the first two statements but acknowledges the error in the third statement.

I a Multiple Regression Equation Defines the Relationship Between the Dependent