Which of the following is/are assumptions of a linear regression? I. For every given value of the independent variable, the dependent variable is normally distributed. II. The error terms are normally distributed with mean zero. III. The error terms are statistically uncorrelated. A. II and III. B. I and III. C. I, II and III. Source - Analyst Notes
I’m not quite sure, however I think it’s A.
I thought so too, but the right choice is C! Explanation: For every given value of the independent variable, the dependent variable is normally distributed, the error terms are normally distributed with mean zero, and the error terms are statistically uncorrelated. The trick is that in y=ax + b+e a, X, b - constant and e - normally distributed, therfore y is also.