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Each of the Following Is Key Assumptions About the Error ε\varepsilon

Question 18

Multiple Choice

Each of the following is key assumptions about the error term in a regression model, except:


A) Error variance is not constant (heteroscedasticity)
B) The expected value of the errors is 0: E( ε\varepsilon i) = 0
C) Errors are mutually independent: The correlation of ε\varepsilon i with ε\varepsilon j is zero
D) Errors are uncorrelated with any X

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