Econometrics: Classical Assumption 1 – The model is linear in the slope coefficients and error term.

In this assumption, it is assumed that the model is linear in the slope coefficients and the associated error term in the equation. What this means is that the slope in a given linear equation is a number that it is neither squared or it is not a reciprocal for example. It is a number that …

Econometrics: Classical Assumption 1 – The model is linear in the slope coefficients and error term. Read More »