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Econometrics

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Moderate

Zero Expected Value Assumption about the Error Term

EMETRC-MVMJGJ

Select ALL that apply. The assumption $E(u)=0$:

A

implies that $u$ and $x$ are not correlated.

B

can always be achieved in a linear regression model by adjusting the intercept $\beta_{0}$.

C

means that the average value of the error term is zero.

D

implies that $u$ and $y$ are not correlated.