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e) Generate the regression residuals and confirm they add up to zero . Also , confirm that the residuals are uncorrelated with the regressor [Hint

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e) Generate the regression residuals and confirm they add up to zero . Also , confirm that the residuals are uncorrelated with the regressor [Hint : refer to lecture demonstrations posted to bCourses .] Answer : Generate residuals and show their average is effectively zero and uncorrelated with x. . predict what , residuals . yumm what Variable Obs Mean Sid . Dev. Min Max what 150 2.24e -07 97.91399 -263.3784 200.6327 correlate what x (oba =150 ) what That 1.0000 -0.0000 1.0000

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