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ECS3706 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (399706)

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ECS3706 Assignment 2 (COMPLETE ANSWERS) Semester 2 2024 (399706) - DUE September 2024 ; 100% TRUSTED Complete, trusted solutions and explanations. For assistance, Whats-App 0.6.7-1.7.1-1.7.3.9. Ensure your success with us...1. Explain why econometricians must know and understand the classical line...

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  • September 6, 2024
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ECS3706
Assignment 2 Semester 2 2024
Detailed Solutions, References & Explanations

Unique number: 399706

Due Date: September 2024


QUESTION 1

Why econometricians must know and understand the classical linear regression
assumptions:

Econometricians must understand the classical linear regression assumptions because they form
the foundation of Ordinary Least Squares (OLS) estimation, ensuring the accuracy, validity, and
reliability of the regression results. These assumptions help in:

• Ensuring unbiased estimators: When assumptions like zero correlation between error terms
and explanatory variables hold, the OLS estimators are unbiased, meaning they provide the
correct values of the population parameters on average.




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