The following are all least squares assumptions with the exception of:
A)The conditional distribution of ui given Xi has a mean of zero.
B)The explanatory variable in regression model is normally distributed.
C)(Xi,Yi),i = 1,... ,n are independently and identically distributed.
D)Large outliers are unlikely.

Question

Quizplus · Accepted Answer

The assumption that the explanatory variable in the regression model is normally distributed is not a least squares assumption. However, the other three options are all least squares assumptions.

The Following Are All Least Squares Assumptions with the Exception