Multiple Choice
Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?
A) The error term has an expected value of 1 given any value of the explanatory variable.
B) The regression equation is linear in the explained and explanatory variables.
C) The sample outcomes on the explanatory variable are all the same value.
D) The error term has the same variance given any value of the explanatory variable.
Correct Answer:
Verified
Correct Answer:
Verified
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