What if the assumption eux0 is not satisfied? illustrate, Ask an Expert

Statistics

1. What is the logic behind the assumption E[u]=0?

2. Why do we need E[u/x]=0?

3. What if the assumption E[u/x]=0 is not satisfied? Illustrate using an example.

4. Explain the relationship represented by a population regression function.

5. Why do we need estimators?

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