Question: a) Discuss the five assumptions usually made about the unobservable error terms in the classical linear regression model (CLRM)? Why are these assumptions made?

a) Discuss the five assumptions usually made about the unobservable error terms

a) Discuss the five assumptions usually made about the unobservable error terms in the classical linear regression model (CLRM)? Why are these assumptions made? b) Discuss the stages in methodology of Econometric Research (7 marks) (8 marks)

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a The classical linear regression model CLRM makes several assumptions about the unobservable error terms also known as disturbances or residuals These assumptions are crucial for valid statistical in... View full answer

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