Final exam Flashcards
1
Q
What is the MLR1 assumption?
A
MLR 1 (Linear in parameters). The population model can be written as
𝑦 = 𝛽” + 𝛽! 𝑥! + ⋯ + 𝛽# 𝑥# + 𝜇
2
Q
What is the MLR2 assumption?
A
MLR 2 (Random sampling) A random sample of n observations from the model by MLR1
3
Q
What is the MLR4 assumption?
A
MLR 4. (Zero conditional mean)
𝐸(𝜇|𝑥! , … , 𝑥# ) = 0
4
Q
What is the MLR3 assumption?
A
MLR 3. (No perfect collinearity) No exact linear relationships among independent
variables.
5
Q
What is the MLR5 assumption?
A
MLR 5. (Homoskedasticity)
𝑉𝑎𝑟(𝜇|𝑥! , … , 𝑥# ) = 𝜎^2
