Which of the following assumptions in a simple linear regres
Which of the following assumptions in a simple linear regression problem is stated incorrectly?
The distribution of the error term is normal.
The mean of the error term is 0.
The variance of the error term increases as x increases.
The errors are independent.
Solution
The variance of the error term increases as x increases. [ANSWER]
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It must be that the variance of the error term must remain constant.
