14. Which of the following assumptions must be made in order to use the pooled least squares estimator, but is relaxed in the cluster robust model? a.) E(e) = 0 b.) var(et) = E(e?it) = s² c.) covleit, ejs) = E(ejt, ejs) = 0 for i j or tt s d.) cov(eit, X2it) = 0, cov(ejt, X3it)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 31E
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14. Which of the following assumptions must be made in order to use the pooled least squares estimator, but is relaxed in the cluster robust model?
a.) E(e) = 0
b.) var(et) = E(e?it) = s²
c.) covleit, ejs) = E(ejt, ejs) = 0 for i j or tt s
d.) cov(eit, X2it) = 0, cov(ejt, X3it)
Transcribed Image Text:14. Which of the following assumptions must be made in order to use the pooled least squares estimator, but is relaxed in the cluster robust model? a.) E(e) = 0 b.) var(et) = E(e?it) = s² c.) covleit, ejs) = E(ejt, ejs) = 0 for i j or tt s d.) cov(eit, X2it) = 0, cov(ejt, X3it)
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