In a Multiple Regression Model, What Is Assumed to Be

question 122

Multiple Choice

In a multiple regression model, what is assumed to be true of the standard deviation of the error variable ?

• A) It is assumed to be constant for all values of the independent variables.
• B) It is assumed to be constant for all values of the dependent variable.
• C) It is assumed to be equal to 1.0.
• D) It is assumed to be less than 1.0.

---

Definitions:

Joint Taxable Income

The total taxable income jointly reported by a married couple or partners filing a combined tax return.

Tax Owed

The total amount of tax liability that an individual or business is obligated to pay to a taxing authority.

Progressive Tax System

A tax that increases as income increases; the percentage or rate increases.

Income

The money received, especially on a regular basis, for work or through investments.