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Assumption C.7, like its counterpart Assumption B.7, is essential for both the unbiasedness and the consistency of OLS e

ASSUMPTION C.7. Assumptions for Model C C.7 The disturbance term is distributed independently of the regressors u t is distributed independently of X jt' for all t' (including t ) and j (1) The disturbance term in any observation is distributed independently of the values of the

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