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Multicollinearity

Chapter 10

11*

Nonnormality of disturbances

Introduction to Part II

*Note: The assumption that the disturbances u are normally distributed is not a part of the CLRM. But more on this in Chapter 4.

*Note: The assumption that the disturbances u are normally distributed is not a part of the CLRM. But more on this in Chapter 4.

94 PART ONE: SINGLE-EQUATION REGRESSION MODELS

EXERCISES Questions

3.1. Given the assumptions in column 1 of the table, show that the assumptions in column 2 are equivalent to them.

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