Q. 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