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I'm writing my dissertation right now and in it I've used a regression model. With one independent variable and 4 dummy variables.

Y = b_0 + b_1STAR1 + b_2STAR2 + b_3STAR3 + b_3STAR4 + b_3 STAR5 + e

Were the beta parameters are OLS estimators and STARi are the dummy variables i.e( value 0 or 1).

Now i know what the 5 assumptions behind OLS. Although how do i prove that they are fulfilled?

  1. Linear in parameters

How do i prove my beta parameters are linear?

  1. Random Sampling

I understand how i can argue this assumption.

  1. Zero Conditional mean

Can this be proven by a scatter plot?

  1. Sample Variation

Whats the difference between Sample variation and Random Sampling?

  1. Homoscedasticity

If I've done a regression in Excel can i just take the variance of all the residuals to see if its a constant?

user358065
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  • First see https://stats.stackexchange.com/questions/16381/what-is-a-complete-list-of-the-usual-assumptions-for-linear-regression/16460#16460 – Tim Apr 27 '17 at 10:38

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