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natima [27]
3 years ago
8

The error terms are ______________ in the probabilistic sense.

Business
1 answer:
hichkok12 [17]3 years ago
4 0

In probabilistic sense random error are independent. Also, assumptions for random error, epsilon are mean equal to 0, variance equal to sigma squared and normal distribution. General form of probabilistic is y=deterministic+random error where y is the variable of interest. We always assume that the mean value of the random error equals 0. E(y) =mean of y, E(y) =deterministic component. 

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