The Normality Assumption Implies That

question 6

Multiple Choice

The normality assumption implies that:

• A)the population error u is dependent on the explanatory variables and is normally distributed with mean equal to one and variance ².
• B)the population error u is independent of the explanatory variables and is normally distributed with mean equal to one and variance .
• C)the population error u is dependent on the explanatory variables and is normally distributed with mean zero and variance .
• D)the population error u is independent of the explanatory variables and is normally distributed with mean zero and variance ².

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