In regression analysis, which of the following is not a required assumption about the error term $\varepsilon$?
A)The expected value of the error term is zero.
B)The variance of the error term is the same for all values of x.
C)The values of the error term are independent.
D)All are required assumptions about the error term.

Question

Quizplus · Accepted Answer

All of these assumptions are required for regression analysis. The expected value of the error term should be zero, as it measures the deviation of the predicted values from the actual values. The variance of the error term should be constant for all values of x, as this ensures that the model captures the underlying relationship between x and y. The values of the error term should be independent, as this ensures that the errors are not influenced by each other. Therefore, D is the correct answer as all of these assumptions are necessary for regression analysis.

In Regression Analysis, Which of the Following Is Not a Required