Suppose you're running a multiple regression of Home Prices on two treatment variables, City, which is a binary variable for whether or not the home is located in a city or not, and Finished Basement, which is a binary variable for whether or not the home has a finished basement. If you solve for the multiple regression using the moment conditions all of the following conditions must hold except for what?

A. The sum of residuals must equal zero.
B. The correlation between the residuals and Finished Basement must be equal to zero.
C. The correlation between the residuals and City must be equal to zero.
D. The correlation between the residuals and Home Prices must be equal to zero.


Answer: D

Biology & Microbiology

You might also like to view...

Which one of the following would least likely be used during the initiation phase of translation?

A. elongation factors B. tRNA C. small ribosomal subunits D. initiation factors E. mRNA

Biology & Microbiology

Some biologists argue that transposable elements provide benefits to a given species. Which of the following does not describe a potential benefit offered by transposable elements?

A. Increases genetic variation. B. Inserts into functionally important genes. C. Codes for a gene that confers antibiotic resistance. D. Codes for a gene that increases survival.

Biology & Microbiology

The living or ____________________ part of a community is made up of all of the organisms living together. Fill in the blank(s) with the appropriate word(s)

Biology & Microbiology

Clearly differentiate between the following terms: gross primary productivity and net primary

productivity. What will be an ideal response?

Biology & Microbiology