In a multiple regression model,the mean of the probability distribution of the error variable $\varepsilon$ is assumed to be:
A) k,where k is the number of independent variables included in the model.
B) 1.0
C) 0.0
D) None of these choices.

Question

Quizplus · Accepted Answer

The mean of the probability distribution of the error variable is assumed to be 0. This means that, on average, the errors will cancel each other out and not systematically bias the regression coefficients. Option A is incorrect because the mean of the error variable is not related to the number of independent variables in the model. Option B is incorrect because the mean of the error variable is not assumed to be 1. Option D is incorrect because we have already identified the correct answer as option C.

In a Multiple Regression Model,the Mean of the Probability Distribution ε\varepsilonε

In a Multiple Regression Model,the Mean of the Probability Distribution $\varepsilon$