In a multiple regression model, the standard deviation of the error variable e is assumed to be:
A)0.
B)1.0.
C)constant.
D)None of these choices.

Question

Quizplus · Accepted Answer

In a multiple regression model, the standard deviation of the error variable, often denoted as sigma (σ), is assumed to be constant across all levels of the independent variables. This assumption is known as homoscedasticity.

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