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Reading 11- LOS E (Part 1): Q5

5.Which of the following is least likely an assumption of a simple regression?

A)   The variance of the error term is one.

B)   The error term is normally distributed.

C)   The expected value of the error term is zero.

D)   There is a linear relationship between dependent and independent variables.

[此贴子已经被作者于2008-4-1 13:25:52编辑过]

The correct answer was A)

There is no requirement that the variance of the error term should be equal to one.

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