Which of the Following Is Not One of the Assumptions

question 61

Multiple Choice

Which of the following is not one of the assumptions of regression?

• A) There is a population regression line.
• B) The response variable is not normally distributed.
• C) The response variable is normally distributed.
• D) The errors are probabilistically independent.

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Definitions:

Subsidiaries

Companies that are controlled by another company, often referred to as the parent company, through ownership of over 50% of the subsidiary's voting stock.

Goodwill Impairment

A decrease in the value of goodwill on a company's balance sheet, indicating that the expected future cash flows from an acquisition are lower than initially estimated.

Straight-Line Method

A method of calculating the depreciation of an asset, which spreads the cost evenly over its useful life.

Consolidated Retained Earnings

The accumulated earnings of a parent company and its subsidiaries after dividends are paid, as presented in consolidated financial statements.