The Following Is Not Part of the Extended Least Squares

question 34

Multiple Choice

The following is not part of the extended least squares assumptions for regression with a single regressor:

• A)var(ui Xi)= .
• B)E(ui Xi)= 0.
• C)the conditional distribution of ui given Xi is normal.
• D)var(ui Xi)= .

---

Definitions:

Capital Intensity Ratio

A measure of the amount of capital needed per dollar of revenue, indicating the investment required for a company to maintain its current level of production.

Full Capacity

The maximum level of output that a company can sustain over a period of time without increasing the production resources.

Long-term Debt

Borrowings or financial obligations that are due for repayment over a period longer than one year.

Capital Intensity Ratio

A financial measure that indicates the amount of assets or capital required to generate a dollar of revenue, illustrating the capital efficiency of a company.