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

A. 1.0
B. 0.0
C. k, where k is the number of independent variables included in the model.
D. None of these choices.


Analysis:
A. Incorrect. The probability distribution of the error variable is assumed to be 0.0
B. Correct. The probability distribution of the error variable is assumed to be 0.0
C. Incorrect. The probability distribution of the error variable is assumed to be 0.0
D. Incorrect. The probability distribution of the error variable is assumed to be 0.0
ANSWER : B

Business

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