Which Assumption Must Be True When E(e|x)= 0?
A)E(e)= 0 $\sigma$

question 10

Multiple Choice

Which assumption must be true when E(e|x) = 0?

• A)E(e)= 0 and var(e)= \(\sigma\)²
• B)e = 0
• C)E(e)= 0 and cov(x,e)= 0.
• D)E(e)= e|x if x≠0

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