One Assumption of Linear Regression Is

question 45

Multiple Choice

One assumption of linear regression is

• A)the Y scores at each X form an approximately normal distribution.
• B)the X scores at each Y form an approximately normal distribution.
• C)at each X,both the X and Y score samples should represent an approximately normal distribution.
• D)at each X,approximately 68% of all Y scores should be between .

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Definitions:

Detachable Warrant

A financial instrument that grants the holder the right to purchase a company’s stock at a specified price, which can be detached and sold separately from the bond or preferred stock to which it was originally attached.

Traded Separately

Refers to the practice of trading components of a financial product independently, such as the detachable coupons from bonds being sold separately from the principal.

Common Shares

Equity securities that represent ownership in a company, giving holders voting rights and a share in the company's profits via dividends.

Conversion Value

The value of a convertible security if it is converted into a different asset, usually common stock, at its current price.