When Using a Multiple Regression Model,we Assume That Error Terms

question 132

Multiple Choice

When using a multiple regression model,we assume that error terms (residuals) are distributed according to a(n) ________________ distribution.

• A)Binomial
• B)Normal
• C)Exponential
• D)Poisson

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Accounts Payable

Accounts payable are amounts a company owes to suppliers for items or services purchased on credit; it is a current liability on the balance sheet.

Nominal Annual Cost

The cost of a product or service stated in current year prices without adjusting for inflation or deflation.

Trade Credit

A type of commercial financing where suppliers allow customers to purchase goods or services and pay for them at a later date.