To Check Out Whether the Regressions Assumption Involving Normality of the Error

question 2

True/False

To check out whether the regressions assumption involving normality of the error terms (residuals) is valid, it is appropriate to construct a normal probability plot. If this plot forms a straight line from the lower-left-hand corner to the upper-right-hand corner, the error terms may be assumed to be normally distributed.

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Definitions:

Variance

The average of the squared differences from the mean, showing the spread between numbers in a data set.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution, typically in the context of parameter estimation or hypothesis testing.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution.

Area

Area refers to the extent or measure of a surface or piece of land, typically measured in square units like square meters or miles.