3. X2, X3 Xk are nonstochastic or fixed
4. There is no exact linear (7.1.7) relationship among the
X variables, that is, no multicollinearity
where u and 0 are n x 1 column vectors, 0 being a null vector
where I is an n x n identity matrix
3. The n x k matrix X is nonstochastic, that is, it consists of a set of fixed numbers
4. The rank of X is p(X) = k, where k is the number of columns in X and k is less than the number of observations, n
5. The u vector has a multivariate normal distribution, i.e., u ~ N(0, a2I)
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