Table C1 Assumptions Of The Classical Linear Regression Model

Scalar notation

Matrix notation

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)

Was this article helpful?

0 0
Rules Of The Rich And Wealthy

Rules Of The Rich And Wealthy

Learning About The Rules Of The Rich And Wealthy Can Have Amazing Benefits For Your Life And Success. Discover the hidden rules and beat the rich at their own game. The general population has a love / hate kinship with riches. They resent those who have it, but spend their total lives attempting to get it for themselves. The reason an immense majority of individuals never accumulate a substantial savings is because they don't comprehend the nature of money or how it works.

Get My Free Ebook


Post a comment