Zero Conditional mean

General
#1

Hello,

In my assignment im supposed to show that my multiple regression fulfills the "zero conditional mean" assumption, MLR.4, i.e E(u|xi)=0 but i dont know how to code it in R.

My regression looks like

Regalc <- lm(ethanol ~ beertax+unemrate+educ, data = alcohol)

Since I probably dont have included all the "right" independent variables it must be likely that my dependent variable "ethanol" must be correlated with the error term?

How do i code and interprate?

Thanks!

#2

Hi, welcome!

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#3

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