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Pretend GARP regressed the exam scores (...

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题目

Pretend GARP regressed the exam scores (FRM Score) against preparation time (Hours) and returned the following regression: FRM Score(i) = 23.2 + 0.18×Hours(i) + u(i). Which of the following is the best interpretation of the error term, u(i)?

选项

A.It allows for users to adjust to inform the intercept with a "real world" interpretation

B.It contains the assumed but unobserved correlation between the error term and the regressor (independent variable)

C.The error term represents all of the factors other than preparation time that influence the score

D.It is the estimator of the standard deviation of the regression error

答案

C

解析

The error term represents all of the factors other than preparation time that influence the score.误差项表示影响准备分数的除准备时间以外的所有因素。