Question

A normally distributed error term with mean of zero would Group of answer choices have values that are symmetric about the variance. allow more accurate modeling. yield biased regression estimates. be a hyperbolic curve.

Answer 1

allow more accurate modeling

Explanation:

They ask us what we should expect from a normally distributed error term with of zero, we analyze each option:

a. have values that are symmetric about the variance.

False, does not guarantee symmetry.

b. allow more accurate modeling.

It is correct, in this case we would have a more accurate model.

c. yield biased regression estimates.

it is also false, not necessarily.

d. be a hyperbolic curve.

false, not necessarily.