State True or False and provide a short justification for your answers a) The standard error may be assumed to be large if the data are clustered close to the regression line. b) A good regression model has the fewest number of explanatory variables providing an adequate interpretation of the dependent variable

c) The best-fitting line maximizes the residuals

d) 4 additional dummy variables are required if a categorical variable has 4 levels

e) A scatter diagram of the whole data is always used to verify the normality of errors.