Each of the Following Is Key Assumptions About the Error $\varepsilon$

question 18

Multiple Choice

Each of the following is key assumptions about the error term in a regression model, except:

• A) Error variance is not constant (heteroscedasticity)
• B) The expected value of the errors is 0: E(\(\varepsilon\)_i) = 0
• C) Errors are mutually independent: The correlation of \(\varepsilon\)_i with \(\varepsilon\)_j is zero
• D) Errors are uncorrelated with any X

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