The Extended Least Squares Assumptions in the Multiple Regression Model

question 13

Multiple Choice

The extended least squares assumptions in the multiple regression model include four assumptions from Chapter 6 (u_i 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)the conditional distribution of u_i given X_i is normal.
• D)invertibility of the matrix of regressors.

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