In regression analysis, which of the following is NOT a required assumption about the error term, $\varepsilon$?
A)The expected value of the error term is zero.
B)The error term follows a standard normal distribution.
C)The standard deviation is constant for all values of x
D)The values of the error term are independent.
E)none of the above, all are assumptions

Question

Quizplus · Accepted Answer

The error term in regression analysis does not need to follow a standard normal distribution. The assumption is that the errors are normally distributed, but not specifically standard normal. The standard normal distribution is a special case of the normal distribution with a mean of 0 and a standard deviation of 1, which is more specific than necessary for the general assumptions of regression analysis.

In Regression Analysis, Which of the Following Is NOT a Required