True or False   Consider the following model, Yi = β0 + β1Xi + ui,E[ui|Xi] = 0,i = 1,...,n (1)Cov(Xi,ui) = 0.  (2) Cov(Yi,ui) = 0. (3) ∑ni=1 ˆuiXi = 0  (4) ∑ni=1 ˆui = 0, where ˆui = Yi − ˆβ0 − ˆβ1Xi

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter9: Systems Of Equations And Inequalities
Section9.9: Properties Of Determinants
Problem 46E
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True or False

 

Consider the following model,

Yi = β0 + β1Xi + ui,E[ui|Xi] = 0,i = 1,...,n

(1)Cov(Xi,ui) = 0. 

(2) Cov(Yi,ui) = 0.

(3) ∑ni=1 ˆuiXi = 0 

(4) ∑ni=1 ˆui = 0, where ˆui = Yi − ˆβ0 − ˆβ1Xi

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