APPLICATION OF SUPERVISED LEARNING
LINEAR REGRESSION
| Question 
 [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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 Which of the following assumptions do we make while deriving linear regression parameters?The true relationship between dependent y and predictor x is linear The model errors are statistically independent The errors are normally distributed with a 0 mean and constant standard deviation The predictor x is non-stochastic and is measured error-free 
|  |  1, 2 and 3 
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|  |  1, 3 and 4 
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|  |  1 and 3 
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|  |  All of the above 
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 Explanation: 
Detailed explanation-1: -Assumption 1 – Linearity: The relationship between X and the mean of Y is linear. Assumption 2-Homoscedasticity: The variance of residual is the same for any value of X. Assumption 3 – Independence: Observations are independent of each other.
Detailed explanation-2: -The errors are normally distributed with a 0 mean and constant standard deviation.
Detailed explanation-3: -Answer and Explanation: c. The errors are independent. The errors in the linear regression model are assumed to take values that are basically independent to each other.
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