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Assumptions of Linear Regression

HardA/B Testing & Experimentation00:00
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Your question is Assumptions of Linear Regression. Take a moment with it on the right.

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Problem

What are the assumptions of linear regression?

Asked in the Round 1 stage. Answer as a practical experimentation question: explain each assumption, describe how you would diagnose violations, and state the consequences for an A/B test analyzed with regression adjustment.

  1. State the assumptions precisely, including linearity, independent errors, exogeneity, constant variance, and appropriate treatment of influential observations.
  2. Distinguish assumptions needed for unbiased treatment-effect estimates from those mainly needed for standard errors and confidence intervals.
  3. Provide a pre-registered analysis approach, including the primary estimand, MDE, diagnostics, and response to violations.
  4. Explain how your conclusion changes if assumptions fail.