Virtually all of Chapter 14 is spent discussing the violation of the assumption that the error term is independent of the explanatory variables.
(a) Under what circumstances might that assumption be violated?
(b) What would the violation of that assumption be likely to cause?
(c) What general technique is used to rid the equation of this problem? Specifically, how does
it work?

Question

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The Answer of Virtually all of Chapter 14 is spent discussing the violation of the assumption that the error term is independent of the explanatory variables.
(a) Under what circumstances might that assumption be violated?
(b) What would the violation of that assumption be likely to cause?
(c) What general technique is used to rid the equation of this problem? Specifically, how does
it work?

Virtually All of Chapter 14 Is Spent Discussing the Violation