Hi all,
  I have 3 questions:
1- Linear regression assumes that the errors are uncorrelated across
observations or with the response variable, is it the same thing? If we
assume otherwise (i.e. errors are correlated) then we will end up with
biased estimators correct?

2- Linear regression assumes that the variance of the errors is constant
around the true curve, whats the advantage in doing that?

3- Whats the difference between dependence and correlation? are independent
random variables always uncorrelated?

Thanks,
albinali



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