Exam 1

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

homoscedastic

identically distributed

normally distributed

independent

uncorrelated
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. No distribution assumption is needed.

False. Independence is not assumed, only lack of correlation.

True. The errors need to be uncorrelated.