In the model yt=
0+
1xt1+
style="vertical-align:middle;" />2xt2+ ….. + kxtk + ut, the explanatory variables, xt = (xt1, xt2…., xtk), are sequentially exogenous if:
A. E(ut|xt , xt-1, ……) = E(ut) = 0, t = 1,2, ….
B. E(ut|xt , xt-1, ……) E(ut) = 0, t = 1,2, ….
C. E(ut|xt , xt-1, ……) = E(ut) > 0, t = 1,2, ….
D. E(ut|xt , xt-1, ……) = E(ut) = 1, t = 1,2, ….
Answer: A
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