When Autocorrelation Is Present, One of the Assumptions of the Regression

question 20

Multiple Choice

When autocorrelation is present, one of the assumptions of the regression model is violated and that assumption is the _____.

• A) expected value of the error term ε is zero
• B) variance of the error term ε is the same for all values of x
• C) values of the error term ε are independent
• D) values of the error term ε are normally distributed for all values of x