Multiple Choice
Which of the following assumptions is required for two stages least squares estimation with time series data but not required for two-stage least squares estimation with cross sectional data?
A) The conditional mean of the error term is zero.
B) The error term has constant conditional variance.
C) The model includes at least one dummy variable.
D) The error terms are not serially correlated.
Correct Answer:
Verified
Correct Answer:
Verified
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Q5: Consider the following simple regression model y
Q6: Consider the following simple regression model y
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