In a multiple regression model,the mean of the probability distribution of the error variable ε is assumed to be:
A)k,where k is the number of independent variables included in the model.
B)1.0
C)0.0
D)None of these choices.

Question

Quizplus · Accepted Answer

The mean of the probability distribution of the error variable ε is assumed to be 0.0 in a multiple regression model. This is because the errors are assumed to be normally distributed with a mean of 0 and the model is designed to estimate the difference between the predicted values and the true values, which is represented by the error term. Therefore, the mean of the error term must be 0.0 in order for the model to be accurate.

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