One of the assumptions of the classical regression model is the following no explanatory variable is a perfect linear function of any other explanatory variables. Which of the following pairs of variables (X,,X,)would violate this assumption? O X = X Ex = "X O O X = X %3D O X = X %3D riolate this assumption

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter4: Estimating Demand
Section: Chapter Questions
Problem 4E
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One of the assumptions of the classical regression model is the following: no explanatory variable is a perfect linear function of any other
explanatory variables. Which of the following pairs of variables (X,, X) would violate this assumption?
O Xu = X
Ex = "X o
O Xu = X
X1 = X
O None of the above cases violate this assumption.
Transcribed Image Text:One of the assumptions of the classical regression model is the following: no explanatory variable is a perfect linear function of any other explanatory variables. Which of the following pairs of variables (X,, X) would violate this assumption? O Xu = X Ex = "X o O Xu = X X1 = X O None of the above cases violate this assumption.
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