​The Main Assumption of OLS for Any Model Is

question 19

Multiple Choice

​The main assumption of OLS for any model is:

• A)​to check whether the error term is uncorrelated with the response variable.
• B)​to check whether the error term is correlated with the explanatory variables.
• C)​to check whether the error term is uncorrelated with the explanatory variables.
• D)to check whether the error term is correlated with the response variable.

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Definitions:

Short-Term

Pertaining to a limited time period, often in reference to memory, indicating retention of information for a brief duration.

Long-Term

Pertaining to or involving an extended period, especially with reference to retention of information or memory.

Prospective

Relating to or effective in the future, often used in studies that follow subjects forward in time.

Magical Number

The Magical Number, often referred to as "seven plus or minus two," is a theory suggesting the limit of an individual's ability to process, hold, and recall information in short-term memory.