Use of simple linear regression analysis assumes that:
A)Variations around the line are non-random.
B)Deviations around the line are not normally distributed.
C)Predictions can be made outside the range of observed values of the predictor variable.
D)A straight line will be determined that maximizes the sum of deviations of the data points.
E)Predictions are to be made only within the range of observed values of the predictor variable.

Question

Quizplus · Accepted Answer

Simple linear regression analysis assumes that predictions are to be made only within the range of observed values of the predictor variable. This is because the relationship between the predictor and the response variable may change outside the observed range, leading to inaccurate predictions. Therefore, it is important to limit predictions to the observed range of the predictor variable.

Use of Simple Linear Regression Analysis Assumes That