Author Question: Residual analysis is conducted to check whether regression assumptions are met. Which of the ... (Read 127 times)

fox · **on:** Jun 24, 2018

Residual analysis is conducted to check whether regression assumptions are met. Which of the following is not an assumption made in simple linear regression?

A) Errors are independent of each other.
B) Errors are normally distributed.
C) Errors are linearly related to x.
D) Errors have constant variance.

Question 2

A company has recorded annual sales for the past 14 years and found the following linear trend model: y = 5.23 + 144.60t. This means that:

A) on average sales are increasing by of 5.23 per year.
B) on average sales are increasing by of 144.6 per year.
C) there is a seasonal component in the data.
D) sales in year 1 were 5.23.