Which of the following assumptions must be made in order to use the pooled least squares estimator,but is relaxed in the cluster robust model? A)E(e_it)= 0 B)var(e_it)= E(e²_it)= $\sigma$ ² C)cov(e_it,e_js)= E(e_it,e_js)= 0 for i j or t s D)cov(e_it,x_2it)= 0,cov(e_it,x_3it)

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The assumption that cov(e_it,e_js)=0 for i,j or t,s must be made in order to use the pooled least squares estimator. However, this assumption is relaxed in the cluster robust model, which allows for within-cluster correlation between errors.

Which of the Following Assumptions Must Be Made in Order σ\sigmaσ

Which of the Following Assumptions Must Be Made in Order $\sigma$