## 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)

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