Which of the followings satisfy the assumptions of the classical linear regression model ?
A. Zero mean value of disturbance Ui
B. The explanatory variables and the error terms are not independent
C. Homoscedasticity or constant variance of Ui
D. No auto correlation between the disturbances
E. There is more than one exact linear relationship between explanatory variables.
Choose the most appropriate answer from the options given below:
1
A, B, C and D only
2
A, C, D and E only
3
A, C and D only
4
C, D and E only