In a multiple regression model, the values of the error term ,$\varepsilon$, are assumed to be

Question

Quizplus · Accepted Answer

The error term (ε) in a multiple regression model refers to the part of the dependent variable that is not explained by the independent variables. The assumption is that the error term is independent of the independent variables and also independent of itself, meaning that the values of the error term are not related to each other. Therefore, the correct choice is C, where the error terms are assumed to be independent of each other. Choice A is incorrect because the error term is not assumed to be zero; otherwise, the model would perfectly fit the data. Choice B is incorrect because the error terms are assumed to be independent, not dependent on each other. Choice D is incorrect because the error term is not assumed to always be negative; it can be positive or negative.

In a Multiple Regression Model, the Values of the Error ε\varepsilonε

In a Multiple Regression Model, the Values of the Error $\varepsilon$