Homework Help is Here – Start Your Trial Now!
Math
Statistics
the conditional mean assumption

the conditional mean assumption

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
See similar textbooks
icon
Related questions
Question

14

In a simple linear regression model y = Bo + B12 + u. the conditional mean assumption E[ula = 0 implies that: O The explanatory variable is correlated with unobserved variables O The sample used for the estimation is random O The expected value of the error term is equal to zero O The fitted values correspond to the expected values of y conditional on x
Transcribed Image Text:In a simple linear regression model y = Bo + B12 + u. the conditional mean assumption E[ula = 0 implies that: O The explanatory variable is correlated with unobserved variables O The sample used for the estimation is random O The expected value of the error term is equal to zero O The fitted values correspond to the expected values of y conditional on x
Expert Solution
Step 1
Assumption :The Error Term has Conditional Mean of Zero
 
This means that no matter which value we choose for X , the error term u must not show any systematic pattern and must have a mean of 0 .
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS