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Question: Which of the following statement(s) is/are false?
I. The variances (or standard deviations) for the y variables are the same for each value of the independent variable. This is equal - variance assumption.
II. There is a linear relationship between the dependent variable and the independent variables. This is called the normality assumption.
III. The independent variables are not correlated. This is called the linearity assumption.
IV. The values for the y variables are independent. This is called the independence assumption.


A ) I and III only
B ) I and IV only
C ) II and IV only
D ) II and III only

Steps to derive

1 The variances (or standard deviations) for the y variables are the same for each value of the independent variable. This is called equal - variance assumption.

2 There is a linear relationship between the dependent variable and the independent variables. This is called the linear assumption.

3 The independent variables are not correlated. This is called the nonmulticolinearity assumption.

4 The values for the y - variable are independent. This is called the independence assumption.

5 So, II and III statements are false.



Hence the right answer is Option D

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