Question

Perfect Linear relationship between two or more independent variables is a violation of .... a. MLR.1 - Linearity in parameters assumption b. MLR.3 - No perfect collinearity assumption c. MLR.4 - Zero conditional mean assumption d. MLR.5 - Homoskedasticity assumption

Answer 1

b. MLR.3 - No perfect collinearity assumption

Explanation:

There is an assumption that nothing in the error term should correlate with the explanatory variable (x) of interest and outcome variable of (y). It does not allow any linear relation between two or more variables. If there is a relation between the variable it the the violation of this assumption.