Homework SourseWhat are the statistical assumptions in order to make the re
| What are the statistical assumptions in order to make the results | |||
| of a simple linear regression valid? |
| What are the statistical assumptions in order to make the results | |||
| of a simple linear regression valid? |
Solution
1. There must be a linear relationship between the independent and dependent variable.
2. There is no correlation between two consecutive errors.
3. There is a constant variance of the errors.
4. The errors are normally distributed.
