An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as
A. independence of residuals
B. dependence of residuals
C. independence of correlation
D. None of the above
Answer: Option A
Solution (By Examveda Team)
An assumption of specification analysis states: any observation does not belong to any other observation's residual value, is classified as independence of residuals. These residual plots can be used to assess the quality of the regression.
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