Which of the following assumptions do we make while deriving linear regression parameters?
1. The true relationship between dependent y and predictor x is linear
2. The model errors are statistically independent
3. The errors are normally distributed with a 0 mean and constant standard deviation
4. The predictor x is non-stochastic and is measured error-free
A. 1, 2 and 3
B. 1,3 and 4
C. 1 and 3
D. All of above
Answer: Option D
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