Yi=α+βxi+ϵi.

In this example, the parameter α is called the constant or intercept, and represents the expected response when xi=0

The parameter β is called the slope, and represents the expected increment in the response per unit change in xi.

Model should be linear in parameters..

None of the independent variables have linear relationship with any other independent variables.

None of the independent variables are correlated with mean of error.

Error term observation are independent to each other OR they are not correlated to each other..

Mean of error term are zero..

Error term has a constant variance. {i.e., no Heteroscedasticity}..

The error term is normally distributed.