One of the Assumptions Made in Simple Regression Is That

question 77

Multiple Choice

One of the assumptions made in simple regression is that ______________.

• A)the error terms are exponentially distributed
• B)the error terms have unequal variances
• C)the model is linear
• D)the error terms are dependent
• E)the model is nonlinear

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced over the short term.

Variable Costs

Costs that vary directly with the level of production or business activity, such as raw materials, packaging, and labor directly involved in a company's manufacturing process.

Sunk Costs

Expenses that have already been incurred and cannot be recovered or altered, and should not be considered in future business decisions.

Cash Flow

The cumulative sum of funds moving into and out of a company, particularly influencing its liquid assets.