1. DRQ 8 Dr. Capps AGEC 317 4 points
What is the sum of all residuals equal to? (1 point) 0
How do you interpret these correlation coefficients?
(1/2 point) a very small negative correlation or linear association among two variables
0.9 (1/2 point) a very large positive correlation or linear association among two variables

2. DRQ 8 Dr. Capps AGEC 317 4 points
__Principle of Parsimony(definition)___ simple models are generally preferred to complex models, especially in forecasting (1 point)
What are two of the four assumptions of a regression model?
Constant variance of the error term
No correlation of the error term at observations i and j
No correlation of the error term with any explanatory variable
The mean of the error term is equal to 0