7.

3 MLR Model Assumptions

The four conditions (LINE) that comprise the multiple linear regression model generalises the simple
linear regression model conditions:

- The mean of the response, ( ), at each set of values of the predictors, (1 , 2 , ), is a

Linear Function of the predictors
- The errors, , are Independent
- The errors, , at each set of values of the predictors, (1 , 2 , ), are Normally Distributed
- The errors, , at each set of values of the predictors, (1 , 2 , ), have Equal Variances

An alternative way to describe all four assumptions is that the errors, , are independent normal
random variables with mean zero and constant variance, 2 .