In a multiple regression model, the values of the error term, ε, are assumed to be _____.
A) 0
B) dependent on each other
C) independent of each other
D) always negative

Question

Quizplus · Accepted Answer

In a multiple regression model, the error terms are assumed to be independent of each other. This assumption is crucial for accurate estimation of the coefficients and for making valid inferences and predictions based on the model. The error terms may or may not be zero, and they could be positive, negative, or zero, depending on the specific data and model.

In a Multiple Regression Model, the Values of the Error