What Is the Relationship Between Diamond Price and Carat Size

Multiple Choice

What is the relationship between diamond price and carat size? 307 diamonds were sampled and a straight-line relationship was hypothesized between y = diamond price (in dollars) and x = size of the diamond (in carats) . The simple linear regression for the analysis is shown below: Least Squares Linear Regression of PRICE Which of the following assumptions is not stated correctly?

A) The probability distribution of ε is normal.
B) The mean of the probability distribution of ε is 0.
C) The variance of the probability distribution of ε is constant for all settings of the independent variable.
D) The values of ε associated with any two observations are dependent on one another.