Which of the Following Are NOT Assumptions of a Multiple

question 3

Multiple Choice

Which of the following are NOT assumptions of a multiple regression model?

• A)R-squared should be above 90%
• B)The relationship between the response and the predictors is linear.
• C)The residuals are approximately normally distributed
• D)The variability of the errors is about the same for all values of each predictor.
• E)All of these are characteristics of a good regression model.

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Definitions:

Marginal Revenue

The extra income obtained from the sale of an additional unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase.

Quantity Axis

A graphical representation element used in economics to indicate quantities, such as quantities of goods produced or sold.

Marginal Revenue

The extra revenue earned from the sale of an additional unit of a product or service.