ABSTRACT

A.1. Each of the Xj's, j = 1,…,m, is nonstochastic with fi nite variance. A.2. n > p = m + 1 so that we have a suffi cient number of degrees of freedom for esti-

mation and testing. A.3. No exact linear relationship exists between the Xj's, j = 1,…,m, i.e., none of the

explanatory variables is perfectly correlated with any other explanatory variable or with any linear combination of the other explanatory variables.