1.

Provide five assumptions of Linear regression.

Answer»

There COULD be many assumptions. Five of them are described below:

  1. The REGRESSION MODEL is LINEAR in parameters.
  2. The mean of residuals is zero.
  3. Homoscedasticity of residuals or equal variance.
  4. No autocorrelations of residuals.
  5. No PERFECT multicollinearity i.e. no perfect linear relationship between explanatory variables


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