
Explanation:
The following are assumptions of the multiple linear regression model:
I. The error term has an expected value equal to zero and is normally distributed
II. The error for one observation is uncorrelated with that of a different observation
III. A linear relationship exists between the dependent and independent variables
IV. The independent variables must not be random, and there should be no exact linear relationship between any two or more independent variables.
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Q.73 Which of the following are assumptions of the multiple linear regression model?
I. The error term has an expected value equal to zero and is normally distributed
II. The error for one observation is uncorrelated with that of a different observation
III. A non-linear relationship exists between the dependent and independent variables
IV. The independent variables are random, and there is an exact linear relationship between any two or more independent variables
A
I and II
B
I and III
C
II and IV
D
III and IV
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