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Linear regression assumptions diagnosis

5 years ago in Case Study By Shubham


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By Natasha Answered 5 years ago

There are four assumptions which suggest the use of linear regression test for prediction and inference. 1. Linearity 2. Statistical independence 3. Homoscedasticity 4. Normality


By Sourabh Answered 5 years ago

 The assumptions are 1. Linearity of relationship between independent and dependent variable 2. Statistical independence of the errors 3. Homoscedasticity of errors 4. Normality of error distribution


By Joshna Answered 5 years ago

Diagnosis of assumptions of linear regression test is quite simple.  Nonlinearity is evident in a plot of observed vs predicted values.  The points must be symmetrically distributed around the diagonal line in the former plot with a variance value.  Look for bowed pattern. If the pattern appears then there is systematic error.


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