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Which one of the following is not a part of classical assumptions, in regression analysis ?

  • A.Values taken by dependent variable Y is fixed in repeated sampling
  • B.Regression model is linear in parameters
  • C.Error term has zero mean
  • D.Error term has a constant variance

Answer: A

The statement that is not a classical assumption is Values taken by dependent variable Y is fixed in repeated sampling.

The classical linear regression model assumes that the explanatory variable X is fixed (non-stochastic) in repeated sampling. The dependent variable Y cannot be fixed: it contains the random error term, so its values vary from sample to sample.

The other three are standard assumptions: the model is linear in the parameters, the error term has zero mean, and the error term has constant variance (homoscedasticity), along with no autocorrelation and no exact multicollinearity.

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