Which of the following is NOT TRUE in describing the assumptions for the classical linear regressions, and the reasons why such assumptions are necessary? Select one: O a. There is no correlation between the error term and the independent variables. This is required for unbiasedness. O b. The error term has a constant covariance. This is required for efficiency. O c. The error term is statistically independent of one another. This is required for unbiasedness. Od. The error term has a zero mean. This is required for unbaisedness. Oe. The error term follows a normal distribution. This is required for parameter testing.

Which of the following is NOT TRUE in describing the assumptions for the classical linear regressions, and the reasons why such assumptions are necessary? Select one: O a. There is no correlation between the error term and the independent variables. This is required for unbiasedness. O b. The error term has a constant covariance. This is required for efficiency. O c. The error term is statistically independent of one another. This is required for unbiasedness. Od. The error term has a zero mean. This is required for unbaisedness. Oe. The error term follows a normal distribution. This is required for parameter testing.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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