Regression Assumptions

Requirements of Regression Analysis

This appendix explains necessary assumptions about the error term in regression analysis and addresses other important issues that are essential for correctness of the results. In order to be able to use statistical theory to perform analysis, it is necessary to adhere to the rules that govern those theories or are prerequisites for their validity. The assumptions or the requirements that are listed and discussed herein are necessary for valid inferences. The proofs of their contribution to the theory and to the validity of the regression results are left for specialty textbooks.

These are necessary conditions in order for the underlying theory to be valid. Sometimes, the notion ...

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