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a) Does this regression satisfy the zero conditional mean assumption (SLR.4)? b) Does this regression satisfy the homoskedasticity assumption (SLR.5)? c) In the real world,
a) Does this regression satisfy the zero conditional mean assumption (SLR.4)? b) Does this regression satisfy the homoskedasticity assumption (SLR.5)? c) In the real world, why might the variance of savings depend on income? d) Given what we have proven in class and your answers to parts (a) and (b), can we conclude OLS estimators for the intercept and slope will be unbiased? BLUE
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Linear Algebra and Its Applications
Authors: David C. Lay
4th edition
321791541, 978-0321388834, 978-0321791542
