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.
|