A multiple linear regression model is to be constructed to d

A multiple linear regression model is to be constructed to determine if there is a relationship between a dependent variable (y) and two independent variables (x1 and x2). A random sample of size n has been collected and the values of x1i, x2i and yi for i = 1, 2, ..., n have been recorded. The residuals (ei) in this analysis are defined as the difference between the observed values of y and the values of y predicted by the regression equation.

Select the condition that is one of the assumptions of a valid multiple linear regression model:

Solution

Since we want a linear regression, then this must be an assumption:

OPTION A: the relationship between the dependent and independent variables is linear. [ANSWER, A]