Residual Analysis Is Conducted to Check Whether Regression Assumptions Are

question 73

Multiple Choice

Residual analysis is conducted to check whether regression assumptions are met. Which of the following is not an assumption made in simple linear regression?

• A) Errors are independent of each other.
• B) Errors are normally distributed.
• C) Errors are linearly related to x.
• D) Errors have constant variance.

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Definitions:

Unanimity

Complete agreement among all members or participants in a particular decision or vote.

Voting Structure

The method or system used to carry out the process of voting or making decisions within an organization or a country.

Economic Efficiency

The optimal distribution of resources in a society, minimizing waste and maximizing value.

Government Failure

A situation in which the structure of incentives is such that the political process, including democratic political decision-making, will encourage individuals to undertake actions that conflict with economic efficiency.