If one is planning to use multiple regression to summarize how the variables X₁, X₂, X₃ explain the variation in Y, how many moment conditions are involved in estimating the linear regression? A) 2 B) 3 C) 4 D) 5

Question

Quizplus · Accepted Answer

Multiple regression involves estimating coefficients for each predictor variable, as well as an intercept term. Therefore, there are four moment conditions involved in estimating a linear regression with three predictor variables.

If One Is Planning to Use Multiple Regression to Summarize