Solved

E(uiXi)=0\mathrm { E } \left( u _ { i } \mid X _ { i } \right) = 0

Question 39

Multiple Choice

E(uiXi) =0\mathrm { E } \left( u _ { i } \mid X _ { i } \right) = 0 says that


A) dividing the error by the explanatory variable results in a zero (on average) .
B) the sample regression function residuals are unrelated to the explanatory variable.
C) the sample mean of the Xs is much larger than the sample mean of the errors.
D) the conditional distribution of the error given the explanatory variable has a zero mean.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents