hat is the orthogonality assumption in OLS, taking Y = a + bX as odel, and the error term is e? (e is epsilon)

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
Question
What is the orthogonality assumption in OLS, taking Y = a + bX as the
model, and the error term is e? (e is epsilon)
Correlation(X, X) = 0
O Correlation(X, e) = 0
O Correlation(e, X)= 1
None of the above
Transcribed Image Text:What is the orthogonality assumption in OLS, taking Y = a + bX as the model, and the error term is e? (e is epsilon) Correlation(X, X) = 0 O Correlation(X, e) = 0 O Correlation(e, X)= 1 None of the above
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