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

question 79

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)error term has a normal distribution
• C)standard deviation of the error term is constant for all values of x
• D)values of the error term are independent
• E)none of the above, all are required assumptions

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Definitions:

Horizontal Acquisition

The process of a company acquiring another company in the same industry to increase its market share.

Hostile Takeover

An acquisition attempt by a company or individual against the wishes of the target company's management and board of directors.

Amalgamation

The merger or consolidation of two or more companies into a new entity, combining their assets, liabilities, and operations.

Consolidation

A merger in which a new firm is created and both the acquired and acquiring firm cease to exist.