the conditional mean assumption

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.1: Measures Of Center
Problem 9PPS
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In a simple linear regression model y = Bo + B12 + u. the conditional mean assumption E[ula = 0
implies that:
O The explanatory variable is correlated with unobserved variables
O The sample used for the estimation is random
O The expected value of the error term is equal to zero
O The fitted values correspond to the expected values of y conditional on x
Transcribed Image Text:In a simple linear regression model y = Bo + B12 + u. the conditional mean assumption E[ula = 0 implies that: O The explanatory variable is correlated with unobserved variables O The sample used for the estimation is random O The expected value of the error term is equal to zero O The fitted values correspond to the expected values of y conditional on x
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