hat is the orthogonality assumption in OLS, taking Y = a + bX as odel, and the error term is e? (e is epsilon)

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter6: The Trigonometric Functions
Section6.4: Values Of The Trigonometric Functions
Problem 23E
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What is the orthogonality assumption in OLS, taking Y = a + bX as the
model, and the error term is e? (e is epsilon)
Correlation(X, X) = 0
O Correlation(X, e) = 0
O Correlation(e, X)= 1
None of the above
Transcribed Image Text:What is the orthogonality assumption in OLS, taking Y = a + bX as the model, and the error term is e? (e is epsilon) Correlation(X, X) = 0 O Correlation(X, e) = 0 O Correlation(e, X)= 1 None of the above
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