Regression analysis consists of two major tasks: (i) estimationof population parameters and (ii) hypothesis testing (e.g., t-test,F-test) or the application of inferential statistics to theestimated parameters. We learned OLS (ordinary least square)principle as the major estimation tool (thereby fulfilling thefirst task). There is a critically important assumption that wehave to make in order to perform the second task (that is, toconduct hypothesis testing with respect to estimated parameters).Identify and discuss it. (10 points)
