In a multiple regression model,the probability distribution of the error variable $\varepsilon$ is assumed to be:
A) normal.
B) non-normal.
C) positively skewed.
D) negatively skewed.

Question

Quizplus · Accepted Answer

The assumption of a normal distribution for the error variable is a key assumption in multiple regression analysis. This assumption is necessary for accurate estimation of the regression coefficients and valid hypothesis testing. Therefore, the best choice is A, normal.

In a Multiple Regression Model,the Probability Distribution of the Error ε\varepsilonε

In a Multiple Regression Model,the Probability Distribution of the Error $\varepsilon$