Which of the Following Is Not a Condition of the Linear

question 17

Multiple Choice

Which of the following is not a condition of the linear regression model?

• A)Linearity
• B)Residuals must be fan-shaped
• C)Constant Standard Deviation of errors
• D)Normality of errors

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Definitions:

Monetarist

An economist who believes that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Keynesian

An economic theory suggesting that increased government expenditures and lower taxes can stimulate demand and pull the global economy out of a recession.

Rational Expectations

An economic theory that proposes people make choices based on rational judgements, accessible information, and previous experiences.

New Classical

An approach in economics emphasizing rational expectations and market clearing, often associated with a resurgence of classical economic principles.