Reading 11- LOS E (Part 1): Q3 following, likely, least, style

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3.Which of the following is least likely an assumption of linear regression analysis?

A)   The error term is normally distributed.

B)   The X values are uncorrelated with the error terms.

C)   The expected value of the residuals is zero.

D)   The Y values are all less than 3 standard deviations from the regression line.

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The correct answer was D)

In a normal distribution, approximately 99%, but not necessarily all, of the observations are within 3 standard deviations of the regression line.