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

question 16

Short Answer

Which of the following is not a required condition for the error variable $\varepsilon$ in the simple linear regression model? $\begin{array}{|l|l|}\hline\text { A. } & \text {The probability distribution of \( \varepsilon \) is normal. }\\\hline \text { B. } & \text {The mean of the probability distribution of \( \varepsilon \) is zero. } \\\hline \text { C. } &\text {The standard deviation \( \sigma_{\varepsilon} \) of \( \varepsilon \) is a constant, no matter what the value of \( x \). }\\\hline \text { D. } &\text {The values of \( \varepsilon \) are auto correlated. }\\\hline\end{array}$

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Definitions:

Increased

A term denoting a situation or quantity that has grown or become larger or greater in size, volume, number, or degree.

Negatively Related

A term describing two variables that move in opposite directions, where an increase in one leads to a decrease in the other.

Slopes Downward

Describes a line or curve on a graph that decreases in value as it moves from left to right, indicating a negative relationship between two variables.

Curve

A line on a graph, which may be curved or straight, that depicts a relationship between two variables.