Q.8 In a regression model, the assumptions of the method of least squares include: [I] Relationship...
Q.8
In a regression model, the assumptions of the method of least squares include: [I] Relationship between x and y is linear [II] the values of X are fixed (non-random) [III] the error terms must be correlated with each other [IV] X is independent of Y [V] the error term is normal and is identically and independently distributed about the mean of zero [VI] the error term is normal but non random
| a. I, II, V |
| b. II, III, VI |
| c. III, IV, V |
| d. I and VI |
| e. All are assumptions of OLS |
Homework Answers
In a regression model, the assumptions of the method of least squares include: [I] Relationship between x and y is linear [II] the values of X are fixed (non-random) [III] the error terms must be correlated with each other [IV] X is independent of Y [V] the error term is normal and is identically and independently distributed about the mean of zero [VI] the error term is normal but non random
Answer: Option (a)
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