In Regression Analysis, Which of the Following Is NOT a Required

question 47

Multiple Choice

In regression analysis, which of the following is NOT a required assumption about the error term $\varepsilon$ ?

• A)expected value of the error term is zero
• B)variance of the error term is the same for all values of x
• C)values of the error term are positive
• D)error term is normally distributed
• E)all of the above

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Definitions:

Neoclassical Economics

A branch of economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand, emphasizing rational individuals and efficient market outcomes.

Behavioral Economics

Behavioral economics studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Neoclassical Economics

A mainstream approach to economics that focuses on the determination of goods, outputs, and income distributions in markets through supply and demand.

Behavioral Economics

A field of economics that analyzes the effects of psychological, cognitive, emotional, cultural, and social factors on economic decisions.