The Classical model makes two roughly equivalent assumptions to ensure the indep
ID: 3206685 • Letter: T
Question
The Classical model makes two roughly equivalent assumptions to ensure the independence of the explanatory variables from the equation's randomly distributed residuals: either the explanatory variables are assumed fixed in repeated resembling, or the explanatory variables change in each sample but do so randomly. Why are these assumptions equivalent, i e. why would either one of these assumptions ensure the independence of the explanatory variables from the (randomly distributed) residuals? Explain.Explanation / Answer
The two assumptions are sam because one is the assumption of randomizaton and another is the assumption of repetition, both these assumptions ensure independence of data.