Question

The least squares method requires that the variance ? 2/? of the error variable ? is...

The least squares method requires that the variance ? 2/? of the error variable ? is a constant no matter what the value of x is. When this requirement is violated, the condition is called:
A. heteroscedasticity
B. non-independence of ?ϵ
C. homoscedasticity
D. influential observation

In regression analysis, the coefficient of determination ?2 measures the amount of variation in y that is:
A. unexplained by variation in x
B. explained by variation in x
C. caused by variation in x
D. both A and B are correct answers

The regression line is the straight line that bests fits a set of data points according to what?
A. Most accurate regression criterion
B. Least-squares criterion.
C. Greatest-squares criterion
D. None of the above

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