Write down,in general,the variance-covariance matrix for the multiple regression error term U.Using the assumptions cov(ui,uj|XiXj)= 0 and var(ui|Xi)= .Show that the variance-covariance matrix can be written as In.

Question

Write down,in general,the variance-covariance matrix for the multiple regression error term U.Using the assumptions cov(ui,uj|XiXj)= 0 and var(ui|Xi)=  .Show that the variance-covariance matrix can be written as  In.

Quizplus · Accepted Answer

The Answer of Write down,in general,the variance-covariance matrix for the multiple regression error term U.Using the assumptions cov(ui,uj|XiXj)= 0 and var(ui|Xi)=  .Show that the variance-covariance matrix can be written as  In.

Write Down,in General,the Variance-Covariance Matrix for the Multiple Regression Error