What Is the Relationship Between Diamond Price and Carat Size $\varepsilon$

question 94

Multiple Choice

What is the relationship between diamond price and carat size? 307 diamonds were sampled and a straight-line relationship was hypothesized between y = diamond price (in dollars) and x = size of
The diamond (in carats) . The simple linear regression for the analysis is shown below: Least Squares Linear Regression of PRICE
Predictor


Which of the following assumptions is not stated correctly?

• A) The variance of the probability distribution of \(\varepsilon\) is constant for all settings of the independent variable.
• B) The values of \(\varepsilon\) associated with any two observations are dependent on one another.
• C) The probability distribution of \(\varepsilon\) is normal.
• D) The mean of the probability distribution of \(\varepsilon\) is 0 .

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