In a Multiple Regression Model, the Error Term ε Is

question 30

Multiple Choice

In a multiple regression model, the error term ε is assumed to _____.

• A) have a mean of 1
• B) have a variance of 0
• C) have a standard deviation of 1
• D) be normally distributed

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Definitions:

Measures of Dispersion

Statistical indicators that describe the spread or variability of a data set.

Mode

The value that appears most frequently in a given set of data.

Range

The difference between the highest and lowest values in a dataset, providing a measure of data dispersion.

Variance

A statistical measure that quantifies the spread or dispersion of a set of data points around their mean value.