In a regression setting, which of the following is NOT an assumption about the random error, ?
A) The errors are linearly correlated.
B) The errors are normally distributed with a mean of 0 and a common variance.
C) The errors are independent in a probabilistic sense.

Question

In a regression setting, which of the following is NOT an assumption about the random error,  ?
A) The errors are linearly correlated. 
B) The errors are normally distributed with a mean of 0 and a common variance. 
C) The errors are independent in a probabilistic sense.

Quizplus · Accepted Answer

The assumption that the errors are linearly correlated is not a necessary assumption in a regression setting. The other two assumptions, normality and independence, are typically necessary in order to make valid inferential conclusions about the regression coefficients.

In a Regression Setting, Which of the Following Is NOT