Fundamentals of Mathematical Statistics (BCA) 1st Sem Previous Year Solved Question Paper 2022

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16.

Two limitations of regression analysis are:

Explanation

 (a) Linearity Assumption: Regression analysis assumes a linear relationship between the independent and dependent variables. In real-world situations, relationships can be nonlinear, and this assumption may not hold, leading to inaccurate results.

(b)Assumption of Independence: Regression analysis assumes that the observations or data points are independent of each other. If the data is serially correlated or dependent, it can lead to incorrect parameter estimates and standard errors.