The Gauss-Markov assumption of zero conditional expectation of the error term in a population regression model...

 

Transcribed Image Text:

The Gauss-Markov assumption of zero conditional expectation of the error term in a population regression model implies the assumption of mean conditional independence. (Hint: the generalized Law of iterated expectations is E(Y | Z)=E(E(u | X, Z) | Z) for any Y, X, Z random variables) True False The Gauss-Markov assumption of zero conditional expectation of the error term in a population regression model implies the assumption of mean conditional independence. (Hint: the generalized Law of iterated expectations is E(Y | Z)=E(E(u | X, Z) | Z) for any Y, X, Z random variables) True False

Answer rating: 100% (QA)

True If the regression line model satisfies the first 6 classical types of classical assumpti... View the full answer