Which One of the Following Is NOT an Assumption of the Classical

question 24

Multiple Choice

Which one of the following is NOT an assumption of the classical linear regression model?

• A) The explanatory variables are uncorrelated with the error terms.
• B) The disturbance terms have zero mean
• C) The dependent variable is not correlated with the disturbance terms
• D) The disturbance terms are independent of one another.

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