Let ei be the ith residual in the ordinary least squares regression of y on X in

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Let ei be the ith residual in the ordinary least squares regression of y on X in the classical regression model, and let εi be the corresponding true disturbance. Prove that plim (ei − εi) = 0.

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Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

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Question Posted: Nov 11, 2010 02:51 AM

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Let ei be the ith residual in the ordinary least squares regression of y on X in

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We can write e as e y bx x ...View the full answer

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