Which of the following is assumed for establishing the unbiasedness of Ordinary Least Square (OLS) estimates? A) The sample value outcomes on the explanatory variable are all the same value. B) The error term has the same variance given any value of the explanatory variable. C) The error term has an expected value of 0 given any value of the explanatory variable. D) The regression equation is linear in the explained and explanatory variables.
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In fact, having variation in the explanatory variable is important for estimating the relationship between the explanatory and explained variables. B) The error term has the same variance given any value of the explanatory variable - This assumption is known as Show more…
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