Which of the Following Is Assumed for Establishing the Unbiasedness

question 10

Multiple Choice

Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates?

• A)The error term has an expected value of 1 given any value of the explanatory variable.
• B)The regression equation is linear in the explained and explanatory variables.
• C)The sample outcomes on the explanatory variable are all the same value.
• D)The error term has the same variance given any value of the explanatory variable.

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