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True or False Questions - Mark whether the following statements are either True or False statements...

True or False Questions

- Mark whether the following statements are either True or False statements

Heteroscedasticity is the problem in regression when there is a relationship between the independent variables that are being used to predict y.

- Mark whether the following statements are either True or False statements

The assumption that is considered the most "robust" (or flexible) assumption in a regression analysis is the equal variance assumption.

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1) False - Heteroscedasticity or Homoscedasticity is talked in the context of residuals and not the independent variables in a linear regression problem. If the residual terms suffer from heteroscedasticity, then it is a problem in linear regression.

2) False - The most robust assumption is the normality assumption, that is, the dependent, independent variables should follow the normal distribution. Even if they do not follow normal distribution they can be transformed to normal using Box-Cox transformation or any other and even they are transformed, the regression model may still give good enough results.

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