Which of the following is NOT an assumption for the simple linear regression model?
A) The individual error terms are statistically independent.
B) The distribution of the error terms will be skewed left or right depending on the shape of the dependent variable.
C) The error terms have equal variances for all values of the independent variable.
D) The mean of the dependent variable value for all levels of x can be connected by a straight line.
B
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Property owner Able gave an exclusive right to sell listing to his broker Baker for a period of 90 days. The agreement provides that broker Baker would earn a 6% commission. Broker Baker commenced efforts to sell the property, advertising it extensively. Thirty days later, Able sent a certified letter to Baker canceling the listing agreement. He indicated that, because he was giving an open listing to other brokers, he did not owe Baker a fee. The terms of the open listing provide for a 5% commission to be paid. Thirty days later one of the agents, to whom Able had given an open listing, sold the property. In this instance:
a. Only the agent with the open listing has earned a commission. b. Broker Baker is entitled to no commission. c. Broker Baker and the open listing agent must share a 6% commission. d. the seller would be liable to pay commissions to both broker Baker and the broker who sold the property through the open listing
In decision trees, circle symbols are used to denote payoffs
Indicate whether the statement is true or false