In a multiple regression model,the mean of the probability distribution of the error variable,ε_i,is assumed to be: A)1.0 B)0.0 C)any value greater than 1. D)K,where K is the number of independent variables included in the model.

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In a multiple regression model, the mean of the probability distribution of the error variable, ε, is assumed to be 0. This means that on average, the errors in estimating the dependent variable are equally likely to be positive or negative and cancel each other out. If the mean of the error distribution were anything greater than 0, it would indicate a systematic bias in the model's predictions. The number of independent variables included in the model has no bearing on the mean of the error distribution.

In a Multiple Regression Model,the Mean of the Probability Distribution