Which of These Assumptions Means the Errors Are Uncorrelated with All

question 10

Multiple Choice

Which of these assumptions means the errors are uncorrelated with all x's?

• A)E(e_it)= 0
• B)var(e_it)= E(e²_it)= \(\sigma\) ²
• C)cov(e_it,e_js)= E(e_it,e_js)= 0 for i j or t s
• D)cov(e_it,x_2it)= 0,cov(e_it,x_3it)

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