1. . In what follows, which one is not an assumption of the linear regression model?

   	A.	The explanatory variables are uncorrelated with the error terms.
   	B.	The disturbance terms have zero mean
   	C.	The dependent variable is not correlated with the disturbance terms
   	D.	The disturbance terms are independent of one another

1. Suppose Toyotas stock value per share depends only on dividends per share and their relationship can be written as y = a + bx + residual. Lets assume b = 0.50 and a is 30, and we also know the dividend payout was 3.00 dollars, please compute the expected stock price

   	A.	33
   	B.	30.5
   	C.	31.5
   	D.	30