Which of the Following Is Not an Assumption of Linear

question 66

Multiple Choice

Which of the following is not an assumption of linear regression analysis?

• A) The error terms have a constant variance
• B) The error terms are independent
• C) A linear relationship exists between the dependent and independent variables
• D) There is a cause and effect relationship between the dependent and independent variables

---

Definitions:

Pure Monopolist

A market structure where a single firm has exclusive control over the market, being the sole producer of a product with no close substitutes.

Economic Profit

The balance a firm holds after all expenses, both acknowledged and assumed, are deducted from its gross receipts.

Price Discriminating

A pricing strategy where identical or similar products or services are sold at different prices to different buyers.

Marginal Cost

The outlay involved in generating one more unit of a product.