Posted by Mike on .
To conduct a valid regression analysis, both x and y must be approximately normally distributed.
FALSE... Sorry Math Guru.
Conditions for a regression analysis are
We have n observations on an explanatory variable x and a response variable y. Our goal is to study or predict the behavior of y for given values of x.
For any fixed value of x, the response varies according to a normal distribution. Repeated responses y are independent of each other.
The mean response ìy has a straight-line relationship with x:
ìy = á + âx
The slope â and intercept á are unknown parameters.
The standard deviation of y ( call it ó) is the same for all values of x. The value of ó is unknown.