Model Assumptions
Assumptions About the Error Term
The error is a random variable with mean of zero.
The variance of , denoted by 2, is the same for all
values of the independent variables.
The values of are independent.
The error is a normally distributed random variable
reflecting the deviation between the y value and the
expected value of y given by
0 + 1x1 + 2x2 + . . . + pxp