The use of a simple regression model assumes that the error terms associated with making predictions are dependently distributed.

Question

Quizplus · Accepted Answer

The use of a simple regression model assumes that the error terms associated with making predictions are independently distributed. In other words, the errors are not related to each other and their values don't depend on previous errors. This assumption is important to ensure the validity of the model and the accuracy of its predictions. If the errors are dependently distributed, it may indicate the presence of some hidden variables or trends that are not accounted for in the model, which can lead to biased or inconsistent results.

The Use of a Simple Regression Model Assumes That the Error