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:

Express Warranty

An explicit promise or guarantee about the quality or nature of a product, made by a seller to induce the buyer to purchase.

Section 402A

A section of the Restatement (Second) of Torts that made manufacturers and suppliers liable for harm caused by defective products provided to consumers without the need for proving negligence.

Punitive Damages

Compensation awarded in a lawsuit as a punishment to the defendant and to deter future similar conduct, above and beyond mere compensation for losses.

Defendant

Someone or an organization that stands accused or is being sued within a legal court system.