(Appendix 2A)Which of the Following Is Not an Assumption of Linear

question 139

Multiple Choice

(Appendix 2A) Which of the following is not an assumption of linear regression analysis?

• A)The error terms have a constant variance
• B)The error terms are independent
• C)A linear relationship exists between the dependent and independent variables
• D)There is a cause and effect relationship between the dependent and independent variables

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Definitions:

Liability Insurance

A type of insurance that covers a person from damages; most states set minimum liability requirements.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays the remaining costs.

Straight Line Depreciation

A line that shows a constant decline in the value of something, such as a car that loses the same value each year.

Odometer

A gauge on the dashboard of a car that indicates the distance the car has traveled since it left the factory.