In a simple regression model estimated using OLS, the covariance between the estimated errors (residuals) and the regressors is zero by construction. This statement is
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1 mark, −0.333333333333333EconometricsLinear regression and OLSThe regression model and the OLS estimatorModerateabout 3 min
DSE 2015 Question 12: Linear regression and OLS
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Linear regression and OLS has come up 74 times in 7 exams since 2008.
What this question tests
This question is on The regression model and the OLS estimator, part of Linear regression and OLS in Econometrics.
What a linear regression model is and how ordinary least squares picks the fitted line.
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