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What Is the Relationship Between Diamond Price and Carat Size ε\varepsilon

Question 34

Multiple Choice

What is the relationship between diamond price and carat size? 307 diamonds were sampled and a straight-line relationship was hypothesized between y = diamond price (in dollars) and x = size of
The diamond (in carats) . The simple linear regression for the analysis is shown below: Least Squares Linear Regression of PRICE
Predictor
 What is the relationship between diamond price and carat size? 307 diamonds were sampled and a straight-line relationship was hypothesized between y = diamond price (in dollars) and x = size of The diamond (in carats) . The simple linear regression for the analysis is shown below: Least Squares Linear Regression of PRICE Predictor    Which of the following assumptions is not stated correctly? A)  The variance of the probability distribution of  \varepsilon  is constant for all settings of the independent variable. B)  The values of  \varepsilon  associated with any two observations are dependent on one another. C)  The probability distribution of  \varepsilon  is normal. D)  The mean of the probability distribution of  \varepsilon  is 0 .

Which of the following assumptions is not stated correctly?


A) The variance of the probability distribution of ε\varepsilon is constant for all settings of the independent variable.
B) The values of ε\varepsilon associated with any two observations are dependent on one another.
C) The probability distribution of ε\varepsilon is normal.
D) The mean of the probability distribution of ε\varepsilon is 0 .

Correct Answer:

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