Regression Assumptions
Linearity
Ideal
Straight-line relationships
Real Estate
Age shows curves
Fix
Polynomial terms
Independence
Ideal
No mutual influence
Real Estate
Spatial correlation
Fix
Clustered errors
Homoscedasticity
Ideal
Constant variance
Real Estate
Errors grow with price
Fix
Log transformation
No Multicollinearity
Size
Rooms
Beds
Ideal
Independent predictors
Real Estate
Variables correlate
Fix
Check VIF scores
Normal Residuals
Ideal
Bell-shaped errors
Real Estate
Right-skewed tail
Fix
Robust errors