Residuals are assumed to be
A) dependent, uniformly distributed random variables.
B) independent, uniformly distributed random variables.
C) dependent, normally distributed random variables.
D) independent, normally distributed random variables.

Question

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Residuals are assumed to be independent, normally distributed random variables. This assumption is necessary for many statistical analyses, such as linear regression, to be valid. If residuals are not normally distributed or are not independent, the results of the analysis may be biased or incorrect.

Residuals Are Assumed to Be