In the simple linear regression model which of the following is true regarding the values of the random error term ?
A) They are independent.
B) They have a mean of 0 and a common variance, independent of x.
C) They are normally distributed.
D) All of these.
E) None of these.

Question

In the simple linear regression model  which of the following is true regarding the values of the random error term  ?
A) They are independent. 
B) They have a mean of 0 and a common variance, independent of x. 
C) They are normally distributed. 
D) All of these. 
E) None of these.

Quizplus · Accepted Answer

A) The random error term in the simple linear regression model is assumed to be independent.
B) The random error term has a mean of 0 and a common variance, independent of x, which is one of the assumptions of the simple linear regression model.
C) The random error term is assumed to be normally distributed.
Therefore, all of the given options are true regarding the values of the random error term.

In the Simple Linear Regression Model Which of the Following