Suppose You're Running a Multiple Regression of Home Prices on Two

Multiple Choice

Suppose you're running a multiple regression of Home Prices on two treatment variables, City, which is a binary variable for whether or not the home is located in a city or not, and Finished Basement, which is a binary variable for whether or not the home has a finished basement. If you solve for the multiple regression using the moment conditions all of the following conditions must hold except for what?

A) The sum of residuals must equal zero.
B) The correlation between the residuals and Home Prices must be equal to zero.
C) The correlation between the residuals and City must be equal to zero.
D) The correlation between the residuals and Finished Basement must be equal to zero.