Which of the Following Is Not a Required Condition for the Error

question 166

Multiple Choice

Which of the following is not a required condition for the error variable $$\varepsilon$$ in the simple linear regression model?

• A) The probability distribution of \[\varepsilon\] is normal.
• B) The mean of the probability distribution of \[\varepsilon\] is zero.
• C) The standard deviation \[\sigma _ { \varepsilon }\] of \[\varepsilon\] is a constant, no matter what the value of x.
• D) The values of \[\varepsilon\] are auto correlated.

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Definitions:

Labor Unions

Entities that act on behalf of employees in discussions with employers about salaries, work environment, and perks.

Labor Supply

The total hours of work that workers are willing and able to provide at a given wage rate.

Demand for Labor

The total amount of workers that employers want to hire at a given wage rate, in a given time period.

Union Membership

Involvement in an organized association of workers formed to protect and further their rights and interests in the workplace.