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

question 26

Multiple Choice

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 one.
• 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)The error term is normally distributed.

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Definitions:

Mandatory

Required by law or rules; obligatory, leaving no room for personal discretion or choice.

Massive Overstock

Describes a situation where a retailer or inventory-based business holds a significantly larger quantity of products than needed or demanded, leading to excess stock.

Safe Working Conditions

Standards and practices that ensure the physical and mental well-being of employees in their workplace.

Necessary Repairs

Essential maintenance or fixes required to restore an item, property, or infrastructure to a functional or safe state.