In a multiple regression model, what is assumed to be true of the standard deviation of the error variable ?
A) It is assumed to be constant for all values of the independent variables.
B) It is assumed to be constant for all values of the dependent variable.
C) It is assumed to be equal to 1.0.
D) It is assumed to be less than 1.0.

Question

In a multiple regression model, what is assumed to be true of the standard deviation of the error variable  ?
A) It is assumed to be constant for all values of the independent variables. 
B) It is assumed to be constant for all values of the dependent variable. 
C) It is assumed to be equal to 1.0. 
D) It is assumed to be less than 1.0.

Quizplus · Accepted Answer

In multiple regression, it is assumed that the standard deviation of the error variable (also known as the residual) is constant (homoscedastic) for all values of the independent variables. This is because the model assumes that the relationship between the dependent variable and the independent variables is linear and that the error term is normally distributed with a constant variance. In other words, the spread of the residuals around the regression line should be roughly the same across all levels of the independent variables, indicating that the variability of the dependent variable around its mean is the same for all levels of the independent variables.

In a Multiple Regression Model, What Is Assumed to Be