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Reading 11: Correlation and Regression - LOS j: Q1-2

Q1. Regression analysis has a number of assumptions. Violations of these assumptions include which of the following?

A)     Independent variables that are not normally distributed.

B)     Residuals that are not normally distributed.

C)     A zero mean of the residuals.

Q2. Limitations of regression analysis include all of the following EXCEPT:

A)     parameter instability.

B)     regression results do not indicate anything about economic significance.

C)     outliers may affect the estimated regression line.

bc

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aaa

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THANKS

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1

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a

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re

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thanks

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