A2 b4 the disturbance term has zero expectationa3

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Unformatted text preview: omly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B: B.1 The model is linear in parameters and correctly specified.(A.1) B.2 Values of regressors are drawn randomly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) B.4 The disturbance term has zero expectation.(A.3) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B: B.1 The model is linear in parameters and correctly specified.(A.1) B.2 Values of regressors are drawn randomly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) B.4 The disturbance term has zero expectation.(A.3) B.5 The disturbance term is homoscedastic.(A.4) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B: B.1 The model is linear in parameters and correctly specified.(A.1) B.2 Values of regressors are drawn randomly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) B.4 The disturbance term has zero expectation.(A.3) B.5 The disturbance term is homoscedastic.(A.4) B.6 The values of the disturbance term have independent distributions.(A.5) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B: B.1 The model is linear in parameters and correctly specified.(A.1) B.2 Values of regressors are drawn randomly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) B.4 The disturbance term has zero expectation.(A.3) B.5 The disturbance term is homoscedastic.(A.4) B.6 The values of the disturbance term have independent distributions.(A.5) B.7 The disturbance term is distributed independently of regressors. New! Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Assumptions of Model B Below are the 8 assumptions of Model B: B.1 The model is linear in parameters and correctly specified.(A.1) B.2 Values of regressors are drawn randomly from fixed populations. New! B.3 No exact linear relationship among the regressors.(A.2) B.4 The disturbance term has zero expectation.(A.3) B.5 The disturbance term is homoscedastic.(A.4) B.6 The values of the disturbance term have independent distributions.(A.5) B.7 The disturbance term is distributed independently of regressors. New! B.8 The disturbance term has a normal distribution.(A.6) Introduction Measurement Error Simultaneous Equations Past Exam Practice Question Today’s Lecture Gauss-Markov Theorem Theorem Provided that Model B assumptions are satisfied, the OLS estimators are BLUE: Best; most efficient Linear;...
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This document was uploaded on 03/12/2014 for the course ECON 202 at University of London University of London International Programmes (Distance Learning).

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