A normally distributed error term with mean of zero would

a. have values that are symmetric about the variance.
b. allow more accurate modeling.
c. yield biased regression estimates.
d. be a hyperbolic curve.


b
RATIONALE: The practical implication of normally distributed errors with a mean of zero and a constant variation for any given combination of values of x1, x2, . . . , xq is that the regression estimates are unbiased, possess consistent accuracy, and tend to err in small amounts rather than in large amounts.

Business

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