The assumption that X has full column rank implies that
A)the number of observations equals the number of regressors.
B)binary variables are absent from the list of regressors.
C)there is no perfect multicollinearity.
D)none of the regressors appear in natural logarithm form.

Question

Quizplus · Accepted Answer

Full column rank implies that there is no exact linear relationship between any combination of the regressors, which eliminates perfect multicollinearity. Choices A, B, and D are not necessarily related to full column rank.

The Assumption That X Has Full Column Rank Implies That