Multiple Regression and Correlation

• The independent variables and the dependent variable have a linear relationship.
• The dependent variable must be continuous and at least interval-scale.
• The variation in (Y-Y') or residual must be the same for all values of Y. When this is the case, we say the difference exhibits homoscedasticity.
• The residuals should be normally distributed with mean 0.
• Successive values of the dependent variable must be uncorrelated.