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

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

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Econometric Analysis

ISBN: 978-0131395381

7th edition

Authors: William H. Greene

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Question Posted: Nov 15, 2018 05:03 AM

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

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

Econometric Analysis

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