Question: . The normality assumption implies that: a. the population error u is dependent on the explanatory variables and is normally distributed with mean equal to

. The normality assumption implies that:

a. the population error

u

is dependent on the explanatory variables and is normally distributed with mean equal to

one and variance

2

b. the population error

u

is independent of the explanatory variables and is normally distributed with mean equal

to one and variance

c. the population error

u

is dependent on the explanatory variables and is normally distributed with mean zero

and variance

d. the population error

u

is independent of the explanatory variables and is normally distributed with mean zero

and variance

2

.

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