In a multiple regression model, the probability distribution of the error variable is assumed to be:

A. normal.
B. non-normal.
C. positively skewed.
D. negatively skewed.


Analysis:
A. Correct. In a multiple regression model, the probability distribution of the error variable is assumed to be normal.
B. Incorrect. In a multiple regression model, the probability distribution of the error variable is assumed to be normal.
C. Incorrect. In a multiple regression model, the probability distribution of the error variable is assumed to be normal.
D. Incorrect. In a multiple regression model, the probability distribution of the error variable is assumed to be normal.
ANSWER : A

Business

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