2.Which of the following is least likely an assumption of linear regression? The:

A)   residuals are mean reverting; that is, they tend towards zero over time.

B)   expected value of the residuals is zero.

C)   variance of the residuals is constant.

D)   residuals are independently distributed.

The correct answer was A)

The assumptions regarding the residuals are that the residuals have a constant variance, have a mean of zero, and are independently distributed.