Which of the following is not a required condition for the error variable $\varepsilon$ in the simple linear regression model?
A)The probability distribution of $\varepsilon$ is normal.
B)The mean of the probability distribution of $\varepsilon$ is zero.
C)The standard deviation $\sigma _ { \varepsilon }$ of $\varepsilon$ is a constant, no matter what the value of x.
D)The values of $\varepsilon$ are auto correlated.

Question

Quizplus · Accepted Answer

The assumption of autocorrelation (D) is not a required condition for the error variable $\varepsilon$ in the simple linear regression model. In fact, the assumption is that the errors are not autocorrelated, meaning that the error terms of the model are uncorrelated with each other.

Which of the Following Is Not a Required Condition for the Error