In a multiple regression model, the standard deviation of the error variable $\varepsilon$ is assumed to be:
A) constant for all values of the independent variables.
B) constant for all values of the dependent variable.
C) 1.0.
D) None of these choices are correct.

Question

Quizplus · Accepted Answer

The standard deviation of the error variable $\varepsilon$ is assumed to be constant for all values of the independent variables in a multiple regression model. This is because the error variable is assumed to be independent of the independent variables.

In a Multiple Regression Model, the Standard Deviation of the Error