BUS520 MOD 3 DISCUSSION: Regression assumptions

Name BUS520 MOD 3 DISCUSSION Regression assumptions Name Institution Date Based on your knowledge on regression assumptions and your additional research, discuss the potential impact of assumption violation on interpretation of regression results.Is there any influence of the assumption violation on the business decision making? If so, how? If not, why?Week 1: Provide your initial discussion post to the question. Be sure to include references to any resources you used. You should use at least one resource to help you with your initial discussion. Regression assumptions violation and interpretation of regression results Linear regression focuses on the relationship between the dependent variable and independent variables(s) or predictors. The main assumptions are: linear relationship, multivariate normality, no or little multicollinearity, no auto-correlation and homoscedasticity. The normality assumption implies that for fixed values of the independent variable, the independent one is distributed normally. Linearity implies that the dependent and independent variables are linearly associated. Furthermore, the values ​​of y are independent of each other, there is no autocorrelation and the variance of the dependent variable is homogeneous along the independent values (Huck, 2014). The violation of assumptions in the regression results may lead one to ma...