Question

3. What is the assumption underlying the linear regression models

i. Derive the least-squares estimates by any parameters of your choice ii. What is the Regression through the Origin ii. Derive the least-squares estimates of a regression model through the origin

you may use any variables of your choice

Answer 1

The assumption underlying the linear regression models is that the relationship between the dependent and independent variables is linear. This means that the change in the dependent variable is proportional to the change in the independent variable. Additionally, the linear regression model assumes that the errors in the model are normally distributed and that the errors are independent of each other.