The probability distribution of the error variable $$\varepsilon$$ is supposed to be normal, with mean E( $$\varepsilon$$ ) = 0 and constant standard deviation $$\sigma _ { \varepsilon }$$ .

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The statement describes a common assumption in statistical models, where the error term is assumed to follow a normal distribution with mean 0 and standard deviation $$\sigma _ { \varepsilon }$$ . This assumption allows for the use of various statistical tests and model diagnostics.

The Probability Distribution of the Error Variable ε\varepsilonε Is Supposed to Be Normal, with Mean E

The Probability Distribution of the Error Variable $\varepsilon$ Is Supposed to Be Normal, with Mean E