Exam 1

Question
Under the assumptions of the GaussMarkov theorem the errors
of a linear regression model need to be:

homoscedastic

identically distributed

zero

uncorrelated

normally distributed
Solution
Under the assumptions of the GaussMarkov theorem the errors of a linear
regression model need to be uncorrelated, homoscedastic, and with mean zero.

True. The errors need to be homoscedastic with finite variance.

False. No distribution assumption is needed.

False. Only their conditional expectation needs to be zero.

True. The errors need to be uncorrelated.

False. No distribution assumption is needed.