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 which condition must hold?

A) The sum of squared residuals must equal zero.
B) The sum of absolute residuals must equal zero.
C) The sum of the residuals for the observations with Finished Basements (=1) must be zero.
D) The correlation between the residuals and Home Prices must be equal to zero.