DSST Principles of Statistics Exam Prep

Answer: D - In regression analysis, assumptions are based on the L.I.N.E principle as follows: linearity, independent of errors, normality of errors, and equal variance (or homoscedasticity)

Key Takeaway: In regression analysis, an assumption is made that error values are statistically independent. If the error values are dependent, they cause inaccurate results and conclusions as the variables being studied may be dependent. Regression analysis also assumes that errors are normally distributed for any independent variable, and that variance across the variables is equal.