One of the least squares assumptions in the multiple regression ...

[BRWH]

One of the least squares assumptions in the multiple regression model is that you have random variables which are i.i.d. This stands for
 
  A) initially indeterminate differences.
  B) irregularly integrated dichotomies.
  C) identically initiated deltas (as in changes).
  D) independently and identically distributed.

Question 2

Give at least three examples from economics where you expect some nonlinearity in the relationship between variables. Interpret the slope in each case.
 
  What will be an ideal response?

[AaaA]

Answer to Question 1

Answer: D

Answer to Question 2

Answer: Typical answers involve the Cobb-Douglas production function, the Phillips curve, earnings functions, and (given the textbook discussion) student performance and income.

[BRWH]

TYSM

[Jossy]

Excellent