In multiple regression models, which of the following may be assumed in with respect to the values of the error variable ?
A) They are autocorrelated.
B) They are dependent on each other.
C) They are independent of each other.
D) They are always positive.

Question

In multiple regression models, which of the following may be assumed in with respect to the values of the error variable  ?
A) They are autocorrelated. 
B) They are dependent on each other. 
C) They are independent of each other. 
D) They are always positive.

Quizplus · Accepted Answer

In multiple regression models, it is assumed that the errors are independent of each other. If they were dependent on each other, it would indicate a violation of the independence assumption and could lead to biased estimates. Autocorrelation and strictly positive errors are possible but not always assumed.

In Multiple Regression Models, Which of the Following May Be