Which Is Not an Assumption of Least Squares Regression

question 39

Multiple Choice

Which is not an assumption of least squares regression?

• A)Normal X values
• B)Non-autocorrelated errors
• C)Homoscedastic errors
• D)Normal errors

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Definitions:

Perfect Competition

A market structure characterized by many buyers and sellers, free entry and exit, and a homogeneous product, leading to price-taking behavior.

Market Price

The existing rate at which an asset or service may be acquired or disposed of on the market.

Utility Consumption

The enjoyment or satisfaction gained by using a good or service.

Factor Markets

Markets where resources, such as labor, capital, and land, are bought and sold.