The Extended Least Squares Assumptions in the Multiple Regression Model

question 14

Multiple Choice

The extended least squares assumptions in the multiple regression model include four assumptions from Chapter 6 (ui has conditional mean zero; (Xi,Yi) ,i = 1,…,n are i.i.d.draws from their joint distribution;Xi and ui 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 ui given Xi is normal.
• D)invertibility of the matrix of regressors.

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