The Extended Least Squares Assumptions in the Multiple Regression Model

question 30

Multiple Choice

The extended least squares assumptions in the multiple regression model include four assumptions from Chapter 6 (ui has conditional mean zero; (X_i,Y_i) , i = 1,…, n are i.i.d. draws from their joint distribution; X_i and u_i have nonzero finite fourth moments; there is no perfect multicollinearity) . In addition, there are two further assumptions, one of which is

• A)heteroskedasticity of the error term.
• B)serial correlation of the error term.
• C)homoskedasticity of the error term.
• D)invertibility of the matrix of regressors.

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Definitions:

Power Factor

The ratio of real power flowing to the load to the apparent power in the circuit, indicating the efficiency of power usage.

Angle Theta

A symbol commonly used in trigonometry and physics to denote a certain angle, often in relation to circular motion or rotational phenomena.

Series RL Circuit

An electrical circuit composed of resistors (R) and inductors (L) connected in series, influencing the circuit's impedance and phase angle.

Inductive Reactance

Inductive reactance is the opposition that an inductor presents to alternating current, depending on the frequency of the current and the inductance of the component.