Hi nice article.

Are you sure that linear regression assumes that the dependent variable is continuous and bounded? Any reference?


In my mind, there are four assumptions associated with a linear regression model:

Linearity: The relationship between X and the mean of Y is linear.
Homoscedasticity: The variance of residual is the same for any value of X.
Independence: Observations are independent of each other.
Normality: For any fixed value of X, Y is normally distributed.


James et al. Introduction to Statistical Learning (Springer 2013)