Which of the Following Is a Violation of One of the Major

question 80

Multiple Choice

Which of the following is a violation of one of the major assumptions of the simple regression model?

• A)The error terms are independent of each other.
• B)Histogram of the residuals form a bell-shaped,symmetrical curve.
• C)The error terms occur in a random pattern over time.
• D)As the value of x increases,the value of the error term also increases.
• E)The error terms have a mean of zero for any value of x.

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Definitions:

Flow Concept

A term used in economics and finance to describe quantities measured over a period of time, such as income or expenses.

Wealth

An abundance of valuable financial assets or physical possessions which can be transformed into forms that can be used for transactions.

Financial Assets

Assets that derive value from a contractual claim on future earnings or from owning equity in a company, such as stocks, bonds, or bank deposits.