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Assumptions of the Classical Linear Regression Model

question 1 of 27 course: Bachelor of Science in Health Services Management and Planning
question 1 of 27 course: Bachelor of Science in Health Services Management and Planning

Q: Which of the following is a key assumption of the classical linear regression model?

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Cardinal utility assumes satisfaction can be measured in absolute numbers (like temperature), while ordinal utility only ranks preferences (first, second, third). Most modern economics uses ordinal utility because it's easier to compare rankings than precise measurements of satisfaction.

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Cardinal utility assumes satisfaction can be measured in absolute numbers (like temperature), while ordinal utility only ranks preferences (first, second, third). Most modern economics uses ordinal utility because it's easier to compare rankings than precise measurements of satisfaction.

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