1. Econometrics I Summer 2011/2012 Course Guarantor: prof. Ing. Zlata Sojková, CSc., Lecturer: Ing. Martina Hanová, PhD.

2.  the weak set of assumptions  the strong set of assumptions

3. Model is linear in parameters

4. LRM NRM

5. Zero mean value of disturbances - ui.

6. Equal variance of disturbences - ui homoskedasticity Errors have constant variance “homoskedasticity” heteroskedasticity Errors have non-constant variance “heteroskedasticity”

7. No autocorrelation between the disturbances The data are a random sample of the population

8. Construction of var-cov matrix: vector ei * transpose vector ei

9. The errors are normally distributed Normal Probability Plot

10. Zero covariance between ui and Xi

11. the number of >= the number of observations explanatory variables