ASSUMPTIONS OF REGRESSION MODEL Method of Detection Graphical Statistical Departures/ Violations on Assumptions 1. The regression model is not linear in parameters. 2. The error terms do not have constant variance. 3. The values of the regressors, the X's, are not fixed or random, or X values are not independent of the error term. 4. The model fits all but one or a few outlier observation. 5. The error terms are not normally distributed. 6. There is exact linear relationship or exact collinearity between the X variables. 7. For given X's, there is autocorrelation, or serial correlation, between the disturbances. 8 The number of observations n is less than Effects of the violations on the model Remedial Measures
ASSUMPTIONS OF REGRESSION MODEL Method of Detection Graphical Statistical Departures/ Violations on Assumptions 1. The regression model is not linear in parameters. 2. The error terms do not have constant variance. 3. The values of the regressors, the X's, are not fixed or random, or X values are not independent of the error term. 4. The model fits all but one or a few outlier observation. 5. The error terms are not normally distributed. 6. There is exact linear relationship or exact collinearity between the X variables. 7. For given X's, there is autocorrelation, or serial correlation, between the disturbances. 8 The number of observations n is less than Effects of the violations on the model Remedial Measures
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter3: Straight Lines And Linear Functions
Section3.CR: Chapter Review Exercises
Problem 15CR: Life Expectancy The following table shows the average life expectancy, in years, of a child born in...
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