The Following Are All Least Squares Assumptions with the Exception $u _ { i }$

question 52

Short Answer

The following are all least squares assumptions with the exception of: a. The conditional distribution of $u _ { i }$ given $X _ { i }$ has a mean of zero.
b. The explanatory variable in regression model is normally distributed.
c. $\left( X _ { i } , Y _ { i } \right) , i = 1 , \ldots , n$ are independently and identically distributed.
d. Large outliers are unlikely.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the open market.

Phantom Stock Plan

A form of long-term incentive that gives employees potential financial benefits, simulating stock ownership without granting actual stocks.

Company Stock

Shares of ownership in a corporation, offering a means for corporations to raise capital and for investors to potentially profit from the company's success.

Employee Involvement

The degree to which employees are allowed to participate in decision-making processes within their workplace, leading to increased job satisfaction and productivity.