Question

1.The error term in the regression model describes the effects of all factors other than the independent variables on y (response variable). T or F

2. In a regression model, at any given combination of values of the independent variables, the population of potential error terms is assumed to have an F distribution. T or F

3. In a regression model, a value of the error term depends upon other values of the error term. T or F

Answer 1

1. TRUE

As the question says, The error term in the regression model does describe the effects of all factors other than the independent variables on y (response variable). That is the whole point of completing the regression model so as to isolate the effect the independent variable on the response variable.

2. FALSE

No, that is not the case. At any given combination of values of the independent variables, the population of potential error terms is NOT assumed to have an F distribution. Normal distribution is assumed.

3. FALSE

The error terms are independent of each other, and thus the value of one error term does not depend upon other values of the error term.

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