# What are the assumptions underlying linear regression?

- The relationship between the dependent variable (Y) and the independent variable (X) is linear.
- The independent variable is not random.
- The expected value of the error or residual is zero.
- The variance of the error term is constant for all observations or homoskedastic.
- The error terms are uncorrelated between observations.
- The error terms have a normal distribution.

Advertisements

## Trackbacks & Pingbacks